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Bitcoin ETFs Are Fine Despite Suffering Their Worst String of Outflows, Says Expert

Author: Content Editor
Between August 27 and September 6, U.S.-traded spot bitcoin ETFs experienced $1.2 billion in outflows, the longest streak since their launch. However, this is seen as a sign of healthy growth rather than a cause for concern. Eric Balchunas, a senior ETF analyst, believes that this two steps forward, one step back pattern is common for ETFs and indicates that they are serving both long-term investors and traders. While the outflows accounted for roughly 3% of total assets in the funds, Balchunas suggests that a worrisome number would be closer to 15%-20%. Despite the recent outflows, the ETFs have attracted significant cash inflows since their launch, with net inflows of $12 billion in the first two months of trading. Balchunas praises the ETFs for limiting the outflows during times of market volatility and says they have played a role in preventing significant price declines for bitcoin in recent months.

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