- Bitcoin is down 20% from its all-time high.
- But spot Bitcoin ETFs are still vacuuming up assets.
- The products are seeing a “looney toons” amount of success.
Bitcoin has slumped, but spot Bitcoin exchange-traded funds keep outperforming expectations.
On Tuesday, BlackRock’s spot Bitcoin ETF, ticker IBIT, saw $121 million in inflows.
That’s despite Bitcoin stagnating at roughly $57,500, about 20% below its all-time high of $73,000 reached in March.
“A ‘pretty good’ day for IBIT like yesterday is more than the majority of ETFs launched this year will have in total [assets under management] at the end of the year,” Bloomberg Intelligence ETF analyst Eric Balchunas posted on X.
“That’s how looney tunes these numbers are, and why sceptics tend to sound like Flat Earthers,” he added.
All in all, Bitcoin ETFs have accrued $15 billion in assets since they launched in January.
It’s an unprecedented performance. Out of the 500 ETFs that launched last year, 76% still have less than $121 million in assets, Balchunas said.
”Yet IBIT has taken in over $100m in a day 60 times since launching,” he wrote.
Bitcoin ETFs saw almost $400 million in inflows last week alone, even though Bitcoin dropped roughly 11%, according to a CoinShares report.
“I would have been impressed if 90% of their assets hung in there [during the drawdown],” Balchunas said.
But the inflows mean the funds actually grew in size instead of losing assets.
“The boomers hung tough,” he said.
Tom Carreras is a markets correspondent for DL News. Got a tip about Bitcoin ETFs? Reach out at tcarreras@dlnews.com
