LIVEI've been commenting on the spot BTC ETFs today. In the repost below, I asked if Degens or Hodlers are buying the spot BTC ETF.
This is a well-known concept in the ETF community. They go by "trader ETFs" and "allocator ETFs."
The words are what they imply. Trader ETFs are dominated by "degens" that punt in and out of the markets, often chasing its trend.
Allocators are "hodlers" that buy for the long haul and do not get shaken in/out because of price movements.
The cumulative flows of these categories are shown in the chart below. The full list of traders and allocators are shown in the table.
Trader flows are in orange. In the last six years, they have seen only $68 billion in total flows. This list includes some of the biggest high-profile names in ETF-land, SPY, QQQ IWM, EEM, HYG, and DIA. They have $1.069 trillion in assets.
Allocators are in blue. They have seen a massive $750 billion in total flows over the same period. The names are dominated by Vanguard, such as VOO, BNDX, and VTI. They have $1.678 trillion in assets, more than trader ETFs, as their flow goes up to the right no matter what the market is doing, while traders are in and out in something that looks zero-sum.
Noting Vanguard at the top of the allocator ETF list is important because Vanguard has not listed any of the spot BTC ETFs and affirmed again today that they will not be listing them anytime soon. So, the biggest allocator/hodler shop is not pushing spot BTC ETFs.
This strongly suggests that spot BTC ETF buying is dominated by weak-handed traders/degens.
$GRT
$WLD
$MATIC
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