Bitcoin (BTC) is generating a lot of memes this week, and it’s not just because of the “4/20” halving date. The success of Bitcoin exchange-traded funds (ETFs) has led to a halving event that many are calling “almost too perfect.” Despite the sideways movement of BTC’s price, the timing of the halving has given some a sense that it was destined to happen this way.
Eric Balchunas, an ETF analyst at Bloomberg Intelligence, pointed out an interesting coincidence on the day of the halving. Not only did it fall on April 20, a significant meme date in itself, but the largest US-based Bitcoin ETF saw 69 consecutive days of inflows. Balchunas described it as “a little too perfect.”
Although Bitcoin ETFs have experienced a slowdown in inflows since reaching their peak in March, BlackRock’s iShares Bitcoin Trust (IBIT), the largest ETF in terms of assets under management, has not experienced any outflows. Recent data from Farside, a UK-based investment firm, shows that momentum is starting to return towards the end of last week. On April 19, IBIT attracted nearly $30 million, while the second-largest ETF, operated by Fidelity Investments, received almost $55 million. Outflows from the Grayscale Bitcoin Trust (GBTC) were modest at $45.8 million.
The performance of Bitcoin ETFs has divided opinions. Some recent form 13F filings have raised concerns that these ETFs have not gained traction among the mainstream majority. Jim Bianco, the creator of macro research firm Bianco Research, described the first-quarter allocation data as a “disappointment.” He also noted that unrealized gains are shrinking rapidly compared to the current BTC price.
In response to this, Balchunas suggested that asset managers view these products as “hot sauce.” He pointed out that IBIT only has about 60 reported holders, which account for a small percentage of the total shares.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.