First-ever US Bitcoin Spot ETF Sees Significant Net Inflows, Baby Boomers Expected to HODL

Bloomberg ETF analyst Eric Balchunas stated that the US Bitcoin spot ETF saw its first ever single-day net inflow on Friday. This also indicates that over 95% of ETF investors, especially the baby boomer generation, continue to hold during periods of market turmoil and prolonged downturns.

Table of Contents：
Toggle
Baby Boomers are more likely to HODL
GBTC bids farewell to 78 days of net outflows, sees net inflow for the first time
Balchunas said that both outflows and inflows of funds are normal occurrences. However, over time, ETFs tend to have two things in common – net growth and relatively strong holders (strong hands). Ironically, this also shows that the baby boomer generation, who are the main buyers of ETFs, are better at HODLing than the people in the crypto community.

Because ETF investors usually do not engage in short-term trading, they are not degens. ETF investors understand that volatility is common and can bring them long-term benefits. And when they only invest 1-5%, the short-term economic downturn has a relatively small impact on their overall investment portfolio.

Advertisement – Please scroll down for the rest of the content

Note: Degen is short for degenerate, which is more like “DeFi gamblers” or “veterans.” It is often used to describe those who invest funds without considering the security audit of DeFi protocols, rush in first, and exit before the heat subsides or the bubble bursts, extracting liquidity and selling tokens to newcomers, similar to the concept of bubble profiteers.

Grayscale GBTC has also finally bid farewell to 78 consecutive days of net outflows and saw a net inflow of $63 million.

Balchunas called this chart a Hall of Fame level ETF, and he has never seen a similar product before, and it may never happen again.

Balchunas said that GBTC appeared to have inflows again on Monday, and Grayscale indeed has a large marketing budget.

According to SoSo Value data, as of 5/3, Grayscale GBTC has accumulated $17.4 billion in net outflows, and its net asset value is $18.1 billion, equivalent to nearly half of the funds being withdrawn.

Eric Balchunas
GBTC
Bitcoin spot ETF

Further reading:
Institutional investors have not flocked to Bitcoin, 13F reports reveal only 30 fund managers bought IBIT
Bloomberg analyst on ARKB Bitcoin ETF fund outflows: it is just a normal occurrence that will eventually happen.