The case of Spot Bitcoin ETF is more than just news that affects short-term price performance; it will impact long-term price performance significantly. Indeed, this is exactly what we have been saying for a long time. Instead of focusing on short-term price movements, it is necessary to focus on the long-term consequences of spot Bitcoin ETFs beyond the hype.
How Much Bitcoin Did They Buy?
Now it’s time to look at the first day’s net inflows. The volume may have surpassed 6 billion dollars in two days, achieving a unique success. However, it was estimated that the significant portion of this was triggered by profit sales due to the neutralization of the GBTC premium. Below you can see the data on net flows.
The thing to note here is that the net outflows of GBTC are at the level of 95 million dollars. This is not such a massive figure compared to the total size, and the first-day entries to other ETFs look promising. Moreover, considering that many banks and fund managers have not yet opened access to these, the net inflows are very good.
James from Bloomberg, who has been on the side of cryptocurrency investors for months and definitely deserves thanks, shared the above table and said;
“We don’t need to wait until tonight for GBTC Flows. Just -95 million dollars. A fraction of what I and many others thought. This means that yesterday was a big success in my opinion. We will probably see an entry figure for $BRRR from Valkyrie too!
Valkyrie ETF’s entry yesterday was 29.4 million dollars. The total net inflow is 655 million dollars”.
The Future of Spot Bitcoin ETFs
The net inflow being over half a billion dollars on the first day is positive. Especially considering the GBTC sales, we may see more long-term investor entries after the initial rush of those preparing for this launch is over.
ETFs offer everyone an easy opportunity to invest in Bitcoin. After the collapse of FTX, investors struggling to trust exchanges may switch to ETFs in the coming period to eliminate risk and deal with trillion-dollar asset managers. In addition, we will see days when people who are entering cryptocurrencies for the first time but do not know how to do it will easily make BTC investments in the form of ETFs.
The launch day volumes, strong social activity, and advertising efforts, along with competitive transaction fees, are other promising details for the future.
