Posted 4/16/2024, 7:32:00 PM
Bitcoin ETF Inflows Moderate After Initial Surge; Resurgence Expected as Institutions Conduct Due Diligence
- Spot bitcoin ETF flows have slowed after initial heavy buying, with only BlackRock's IBIT still seeing daily inflows
- Slowdown in flows is normal for ETFs - 83% of all US ETFs saw zero inflows on a recent day
- Mismatch between supply and demand triggers creation/redemption of ETF shares; minor mismatches handled like stocks
- Inflows could resurge as more institutions conduct due diligence and allocate to bitcoin
- Grayscale's high-fee GBTC unlikely to see future inflows with new spot ETF competition