Bianco Research CEO Jim Bianco says another bitcoin halving in 2028 and the development of on-chain tools are needed for broader ETF adoption.
BTC ETFs Lose Capital
Ryan Lee, Principal Analyst at Bitget Research, pointed out some problems with ETFs in an interview with our portal:
On the last trading day, BTC spot ETFs recorded a total net outflow of $170 million, marking eight consecutive days of outflow. The eight-day net outflow from BTC ETFs led to a price decline from $64,000 to $53,000, with a significant downward impact on the price.
Indeed, bitcoin ETFs, which launched in the United States earlier this year, have been somewhat disappointing at the moment, with Jim Bianco saying they will take longer to become an “instrument of adoption.”
Now I’ll look at the data again. According to Farside Investors, there’s been a net outflow of over $1 billion over the last eight trading days. Yes, that’s how much was withdrawn from 11 US Bitcoin ETFs. The market is now valued at around $48 billion (that’s how much assets the funds control). For comparison, in March it was $61 billion.
Bianco says this doesn’t mean ETFs will be useless to the industry. He speculates that the next Bitcoin halving, due in 2028, and “significant development of on-chain tools” will drive growth. It’s also about more money being poured into funds.
First, you need patience and a few more seasons, (…), as well as development breakthroughs
— he added.
It’s not that bad!
There’s another side to the coin. Bloomberg senior ETF analyst Eric Balchunas noted in a September 8 post by X that BTC ETFs have already been “pumped” by billions of USD. And that’s a success.
If IBIT (BlackRock) has about $20 billion in assets and that’s considered a failure, what word should be used to describe an ETF (with) $7 million in assets
– he asked.
Indeed, among the four largest U.S. bitcoin ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) ranks first with over $20 billion in net deposits. Fidelity Wise Origin Bitcoin Fund (FBTC) boasts nearly $10 billion. ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF Trust (BITB) have registered much less, but that’s still around $2 billion.
It can be argued that the market simply had too high expectations of ETFs and is now unable to appreciate their success.
