Less Noise, More Signal Bloomberg Senior Analyst Eric Balchunas: Bitcoin Spot ETF could have prevented the FTX collapse
May 29, 2025
In this conversation with Pascal Hügli, Eric Balchunas, a Senior ETF analyst at Bloomberg Intelligence, shares insights on Bitcoin ETFs and their potential to reshape the financial landscape. They discuss how these ETFs attract traditional investors, the rapid rise in their popularity, and the dynamics between retail and institutional holders. Balchunas also addresses regulatory challenges, performance metrics, and the implications of in-kind redemptions. The discussion highlights the broader impact of ETFs on market stability and investor trust.
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Bitcoin ETFs Bridge TradFi and Crypto
- Bitcoin ETFs bridge traditional finance (TradFi) and crypto by offering a familiar, trusted investment vehicle to more conservative investors.
- Their quick market access and regulatory approval bring convenience and reduce friction for new Bitcoin exposure.
Record-Breaking Bitcoin ETF Growth
- Bitcoin ETFs are among the fastest-growing ETFs, matching gold ETFs' asset size within a year.
- The IBIT ETF reached $50 billion in 10 months, beating the previous fastest launch by years.
Diverse Bitcoin ETF Holder Base
- Bitcoin ETF holders are a mix of retail, advisors, and institutional investors.
- About 30% to 45% are advisors or institutions, with big liquid ETFs attracting the largest players.