Originally published on: September 09, 2024
According to Jim Bianco, CEO of Bianco Research, Bitcoin exchange-traded funds (ETFs) in the US need more time to transition from being a “small tourist tool” to an “instrument of adoption.” Bianco highlighted that despite the pre-approval hype, Bitcoin ETFs have not met expectations since their launch in January.
Bianco pointed out recent outflows and holders experiencing losses as signs that the Bitcoin ETF market is still in its early stages and requires more time to mature. He emphasized that significant onchain developments and the next Bitcoin halving in 2028 are likely needed for the market to truly thrive.
Despite Bianco’s cautious outlook, Bloomberg senior ETF analyst Eric Balchunas noted that Bitcoin ETFs have billions in assets under management after eight months, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the pack with over $20 billion in inflows. Other top Bitcoin ETFs in the US, such as Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB), have also seen significant net inflows.
While not everyone shares Bianco’s perspective, with some analysts predicting massive institutional inflows in the future, it seems clear that Bitcoin ETFs are still on a path to becoming a more mainstream investment option in the financial world. The market may need more time to grow and evolve, but the potential for significant development and growth is promising.
