Bloomberg’s exchange-traded fund (ETF) expert Eric Balchunas says that ETF investors are currently the “strong hands” that have been buying up the Bitcoin (BTC) dip.
Balchunas tells his 259,000 followers on the social media platform X that while Grayscale has seen outflows from its ETF, most of it is just one entity – Genesis – offloading into spot Bitcoin.
All in all, Balchunas says ETF investors are not the ones behind recent sell pressure and are buying the dip.
“The new ‘Boomer’ ETF investors are the strong ones (as we predicted), it’s other Bitcoin owners behind the selling pressure. I’ll explain: the nine new Bitcoin ETFs have taken in about $1.2 billion in [five days] as price declined 8%.
GBTC had outflows yes, but it is largely Genesis (we know this for fact), who is simply exchanging GBTC shares for spot BTC, so a net neutral event (plus GBTC is all pre-ETF money).
Add it up, the ETFs have been net buyers of BTC (and none of the new money has left, in fact more has come in). As usual, when it comes to selloffs, the call is coming from inside the house.”
The analyst shares data from previous decades showing that the “boomer” ETF investors have historically held assets with conviction while allocating large amounts of capital when prices drop. He points out that they invested hundreds of billions of dollars into stock market index ETFs in years when equities were plummetting.
“These boomer noobs poured $167 billion into ETFs in 2008 (SPY down 35%) and another $600 billion in 2021 (SPY down 18%). They are tougher than you think. (Although not to say there won’t be some outflows here and there but in my opinion, it will be minimal and over time net positive)”
At time of writing, Bitcoin is worth $64,367.
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