Is Bitcoin Going to Zero? NEVER, Say Top Analysts as ETF Inflows Soar!
In a recent development, members of the Federal Open Market Committee (FOMC) have called for caution regarding interest rate cuts, emphasizing the persistence of inflation.
This stance has led to a decline in U.S. equity markets. However, the Bitcoin (BTC) spot ETF market has shown remarkable resilience, experiencing continued net inflows despite broader economic concerns.
Eric Balchunas, Bloomberg Intelligence’s Senior ETF analyst, noted that a significant portion of Bitcoin’s 40% gains since the ETF launch occurred after hours, with substantial price gaps forming between the close and open of trading sessions.
BitMEX’s research report revealed a surge in BTC spot ETF market net inflows, rising from $40.2 million on April 2 to $113.2 million on April 3.
The Fidelity Wise Origin Bitcoin Fund (FBTC) led the influx with net inflows of $116.7 million on April 3, while the Bitwise Bitcoin ETF (BITB) saw net inflows of $22.6 million during the same period.
Hunter Horsley, Founder & CEO of Bitwise Asset Management, expressed his views during a recent conversation with Anthony Pompliano at the Bitcoin Investor Day’s event in New York.
I think ETFs being approved and BlackRock coming in means that it’s not going to zero.
Matt Hougan, CIO of Bitwise Asset Management, discussed the gradual expansion of ETF adoption, which initially focused on retail investors and independent advisors before attracting larger institutions. He noted that peak inflows occurred in 2020, 16 years after the initial approvals.
Despite limited adoption in U.S. wealth management, analysts remain optimistic about the potential for ETF expansion as regulations evolve. Bitcoin ETFs provide a simplified investment route, eliminating operational complexities associated with direct cryptocurrency ownership.
Horsley expressed his belief that Bitcoin ETFs could attract hundreds of billions of dollars in investments, with allocation sizes ranging from 1% to 5% and potentially increasing as the asset matures. He emphasized that Bitcoin is now considered an institutional asset, marking a significant shift from its perception in the past.
As the Bitcoin spot ETF market anticipates continued net inflows, the upcoming U.S. Jobs Report may influence investor sentiment towards BTC. Additionally, with Bitcoin’s halving event on the horizon, sustained demand through the ETF market could help stabilize the cryptocurrency’s price in the aftermath of this significant milestone.
