Monday’s market turmoil led to $1 billion in liquidations while Bitcoin plunged more than 17%. But investors in BlackRock’s spot Bitcoin exchange-traded fund are unfazed.
Flows — investments in or out of an asset — were $0 at market close, according to data from investment firm Farside.
This indicates that most ETF holders were content to ride out the bloody market crash and become so-called HODLers. The term is usually applied to crypto native “degens” and not risk-averse baby boomer investors.
“Compared to these degens these boomers are like the Rock of Gibraltar,” said Eric Balchunas, an ETF analyst at Bloomberg. “You guys are so lucky to have them.”
BlackRock’s spot Bitcoin ETF is just one of 11 different spot Bitcoin ETFs on the market.
It is, however, the largest. Since its launch in January, it has seen a record $20-plus billion in flows.
Of the 11 different spot Bitcoin ETFs on the market, the net flows were negative $168 million.
Products from Fidelity, Grayscale and Ark & 21 Shares led all the outflows.
Monday’s market turmoil saw the entire crypto market shed more than $152 million in value overnight, according to CoinGecko.
Global capital markets also spiralled amid fears of a US recession, Federal Reserve policy, and skittish markets in Japan.
The falling stopped Tuesday, but Bitcoin and Ethereum are still 17% and 27% down since last week, respectively.
Investors are now turning their attention to the Fed and its meeting on September 18.
The Chicago Mercantile Exchange’s FedWatch tool, which measures expectations for how the Fed will adjust interest rates, expects a 50 basis point, or 0.5%, rate cut in September.
Lower rates are often seen as bullish, as cheaper money seeks higher investment in riskier investments, including stocks and cryptocurrencies.
Liam Kelly is a DeFi correspondent at DL News. Reach out at liam@dlnews.com.
