Coin Stories Eric Balchunas: Bitcoin ETFs Boom with $24 Billion in Flows & Why They Could 3X Gold
Nov 5, 2024
In this engaging conversation, Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, dives into the explosive growth of Bitcoin ETFs, boasting an astonishing $24 billion in net flows. He explores how these ETFs are disrupting traditional investment norms, particularly comparing them to gold ETFs. Eric highlights the new options trading for Bitcoin ETFs and discusses Vanguard's shifting perspective on Bitcoin, suggesting it could become a stabilizing asset in inflationary times. His insights reveal a future where Bitcoin ETFs could potentially outshine gold.
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Bitcoin ETFs Outpace Gold Growth
- Bitcoin ETFs have hit $24 billion in flows within the first year, outpacing gold's growth which took 4-5 years.
- ETFs offer a mainstream and accessible way for normal investors to gain Bitcoin exposure, legitimizing the asset class.
ETFs Disrupting Bitcoin Access
- ETFs now own about 6% of Bitcoin supply within a year, showing unprecedented penetration speed compared to stocks, bonds, or gold.
- ETFs are a disruptive, investor-friendly force changing how asset classes are accessed and traded, especially for Bitcoin.
Bitcoin ETFs Attract New Institutions
- Bitcoin ETF investors include many new institutional holders, not just shifts from other assets.
- ETFs serve multiple roles, attracting new, exchange-based, and even hardcore Bitcoin investors using a familiar vehicle.