On Thursday, the U.S. Bitcoin spot ETF market saw inflows for the fifth consecutive day in six trading days, indicating a recovery in demand for Bitcoin.
According to Farside Investors, the ARK 21Shares Bitcoin Spot ETF (ARKB) saw a net inflow of $81.1 million, compared with a net outflow of $43.4 million the day before; the Fidelity Bitcoin Spot ETF (FBTC) saw a net inflow of $49.9 million, compared with a net inflow of 0 the day before; and the Bitwise Bitcoin Spot ETF (BITB) reported a net inflow of $10.4 million, compared with a net outflow of $3.9 million the day before.
BlackRock identified 4 key points:
1. Given Bitcoin’s unique characteristics and limited history, it is difficult for investors to analyze Bitcoin’s performance relative to traditional asset classes;
2. Traditional risk assets and Bitcoin have different risk and return drivers, so the traditional financial framework (risk-taking vs. risk-aversion) does not apply;
3. Due to Bitcoin’s scarcity, non-sovereignty, and decentralized nature, some investors consider Bitcoin a safe haven;
4. Bitcoin adoption may depend on concerns about global monetary stability, geopolitical stability, U.S. fiscal stability, and U.S. political stability. BlackRock believes that Bitcoin has an inverse relationship with traditional risk assets in terms of these stability effects.
