- According to recent reports, players in the ETF market are now shifting their focus away from spot Bitcoin ETFs.
- A recent Bloomberg report highlights a shift in the frenzy around ETFs in the crypto space, indicating that fund managers in Miami seem to be moving away from the Bitcoin ETF craze.
- Flows into BlackRock’s IBIT surged, placing it among the top 7% of all ETFs by market value.
According to Bloomberg’s latest report, interest in spot Bitcoin ETFs is waning, and the ETF market is focusing on other launches.
Interest in Spot Bitcoin ETFs May Have Declined
The hype around Bitcoin ETFs has kept nearly all newly launched exchange-traded funds buoyant in the market. However, a slow change in sentiments about the popularity of Bitcoin ETFs could lead to a slowdown in inflows. A recent Bloomberg report highlights that players in the ETF market are now shifting their focus away from spot Bitcoin ETFs to other launches.
Bloomberg’s statement about the change in the crypto frenzy suggests that fund managers in Miami have started to move away from the Bitcoin ETF craze. The report indicates that the market seemed to be fixated on something internal, potentially more significant than the anticipated introduction of spot BTC ETFs within the annual Exchange conference. This time, attention appears to have shifted to upcoming launches and potential regulatory measures in the space.
According to data provided by SoSoValue, the market price of most Bitcoin ETFs has reached a peak today. The most popular one, BlackRock IBIT, is currently experiencing a 1.67% decrease in market price. Fidelity and ArkInvestment’s BTC ETFs have also seen a decline of over 1.6% in market price.
However, on the other hand, net inflows into BTC ETFs have remained stable so far. Total cumulative net inflows for ETFs are over $5 billion. According to last week’s total flow data per asset, Bitcoin ETFs saw an enormous $2.4 billion inflow, which is a record.
Market Outlook: What to Expect from Bitcoin ETFs in the Future?
There are different opinions on how much Spot BTC ETFs can gain. According to Standard Chartered analysts, ETFs are expected to raise between $50 billion and $100 billion just this year, while Bernstein analysts predicted that flows would gradually increase to $10 billion by 2024.
Additionally, flows into BlackRock’s IBIT surged, placing it among the top 7% of all ETFs by market value. This is considered by many market analysts as an extraordinary new offering for an exceptionally strong second wind. The market has recently evaluated all newly launched ETFs as having strong short-term returns and sustainable value as long-term investments.
