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First-ever US Bitcoin spot ETF sees all-time net inflows, with more Baby Boomers expected to HODL

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First-ever US Bitcoin spot ETF sees all-time net inflows, with more Baby Boomers expected to HODL

Bloomberg ETF analyst Eric Balchunas said that the US Bitcoin spot ETF saw its first-ever day of net inflows last Friday. This indicates that over 95% of ETF investors, especially the baby boomer generation, continue to hold on during tough and prolonged market conditions.

Baby Boomers Are Better at HODLing Than Crypto Investors

Balchunas stated that both outflows and inflows of funds are normal occurrences. However, over time, there are typically two things that are correct about ETFs—net growth and relatively strong hands of holders. Ironically, this also shows that the Baby Boomer generation, who are the main buyers of ETFs, are better at HODLing than those in the crypto space.

Because ETF investors usually do not engage in short-term trading, they are not degens. ETF investors understand that volatility is common and can bring long-term benefits. When they invest only 1-5%, the short-term economic downturn has a smaller impact on their overall investment portfolio.

Note: Degen is short for degenerate, which is more like "DeFi gamblers, veterans". It is commonly used to describe situations where individuals invest funds without considering the security audit of DeFi protocols, rush to invest before others, exit when the heat decreases or the bubble bursts, extract liquidity, and sell tokens to newbies, similar to the concept of bubble profiteers.

GBTC Says Goodbye to 78 Consecutive Days of Outflows, Sees First Inflow

Grayscale GBTC has finally bid farewell to 78 consecutive days of outflows, seeing its first inflow of $63 million.

Balchunas called this chart a Hall of Fame level HoF, Hall of Fame, saying he has never seen a similar product and may never see one again.

Balchunas mentioned that on Monday, GBTC seemed to have inflows again, and Grayscale indeed has a significant marketing budget.

According to SoSo Value data, as of 5/3, Grayscale GBTC has seen a total outflow of $17.4 billion, and the current net asset value is $18.1 billion, equivalent to almost half of the funds flowing out.