tl;dr
Bloomberg analyst Eric Balchunas remains optimistic about spot Bitcoin ETFs despite $1.2B outflows. He views the outflows as manageable compared to total assets under management and emphasizes the overall positive trend of Bitcoin ETFs. The outflows coincide with global market volatility, including ...
Why Is Bloomberg Analyst Bullish on Spot Bitcoin ETFs Despite $1.2B Outflow? Bloomberg analyst Eric Balchunas remains optimistic about spot Bitcoin ETFs despite $1.2B outflows. He views the outflows as manageable compared to total assets under management and emphasizes the overall positive trend of Bitcoin ETFs.
The outflows coincide with global market volatility, including uncertainty in the US and China. CoinShares data also shows significant digital asset outflows, particularly from the US, amid economic uncertainty. Despite this, Bitcoin's price has seen a 1.57% increase in the last 24 hours.
US Bitcoin exchange-traded funds (ETFs) have experienced their longest period of daily net outflows since their introduction at the beginning of the year. Data compiled through September 6, 2024, reveals that investors withdrew nearly $1.2 billion from these ETFs over an eight-day period. However, Bloomberg analyst Eric Balchunas has maintained a positive outlook on spot Bitcoin ETFs despite the outflows.
In a recent thread on X, Bloomberg analyst Eric Balchunas highlighted his continued optimism towards spot Bitcoin ETFs despite recent outflows. Balchunas noted that the $1.2 billion withdrawn from the ETFs is relatively minor when compared to the total AUM of these funds. He emphasized that such outflows are a normal part of the investment cycle and that significant inflows into Bitcoin ETFs earlier in the year have set a high bar.
According to Balchunas, the $287 million outflow reported recently constitutes only 0.5% of the total AUM, which he considers a manageable amount. Balchunas also addressed the concern that the outflows might indicate a broader issue with the Bitcoin ETFs market. He argued that fluctuations in asset prices are not uncommon and that the current outflows should be viewed in the context of the overall trend. He pointed out that despite the recent downturn, Bitcoin ETFs have seen substantial net flows year-to-date, reaching $16.8 billion.
The recent outflows from US Bitcoin ETFs come amid a broader retreat from riskier assets in global markets. Economic uncertainty, including mixed US jobs data and deflationary pressures in China, has contributed to volatility in both the cryptocurrency and traditional financial markets. Concurrently, CoinGape reported BTC price crash and $300 million in liquidations after Friday’s weak Jobs data.
Despite Eric Balchunas' positivity, weekly CoinShares data also reveal outflows from digital asset investment products, totaling $726 million. This matches the largest outflow recorded in March of this year. More so, the US experienced the bulk of these outflows, amounting to $721 million, driven by uncertainty surrounding potential interest rate cuts by the Federal Reserve. The market’s mixed reaction to macroeconomic data and anticipation of the upcoming Consumer Price Index report contributed to this volatility.
At the time of writing, Bitcoin price is $54,959.48, showing a 1.57% increase in the last 24 hours. The market cap has reached $1.09 trillion, maintaining Bitcoin’s top position in market rankings. However, this BTC price recovery has come with bull trap concerns due to a potential U.S. recession. Despite the uptick, several troubling economic indicators are casting doubt on the rally’s sustainability.
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience. He has worked extensively with various media outlets on cryptocurrency trends and technologies. When he's not analyzing the latest crypto developments, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
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Company: ReneSola Ltd
Industry: Manufacturing, Semiconductors & Related Devices
Market Cap: 97384000
Revenue: Not Available
Net Income: Not Available
EPS: -0.31
Current Ratio: 1.915
Quick Ratio: -0.163
Volume: 103577000
Dividend Yield: 4.38
Beta: -0.924
PE Ratio: -0.112