ARE YOU WORRIED ABOUT THIS ?
If you have survived the market in the last 3 months, you are already a legend.
March : Best Month For Investors
June to August : Worst months in 2024
The reflection of the market can be witnessed with these ETF flows as well
In an expectation to see massive gains, we saw nothing but accumulation in the last three months.
It's not only in the downtrend but the last two days of the market push were sparked with the positive inflows after a long time.
⣠WHAT DOES IT SAY?
While this boost is a good sign, it also raises a bigger concern.
If Bitcoin continues to rely on institutional ETF inflows, it will remain highly susceptible to massive market moves like this.
The very essence of Bitcoin as a decentralized asset becomes blurred when institutions control such a large portion of its market movements.
The question we need to ask is - Are we comfortable letting institutions dictate the pace of a decentralized asset like Bitcoin?
⣠Key Takeaways from 2024 (Jan to Aug):
âž Strong Inflows in Q1:
Jan and March saw major inflows, peaking at $5.7B and $6.3B, indicating institutional interest was strong early in the year.
âž Dramatic Outflows in Q2:
April marked a major shift with negative flows (-$2.6B). By the end of August, we see much more modest inflows, showing the market slowing down.
âž ETF Highlights:
BlackRock's IBIT leads the pack with an AUM of $21.198B and a net inflow of $8.28M.
Grayscale's GBTC saw outflows of $9.82M, with a 1.5% fee but still holds $13.791B in AUM.
Fidelity's FBTC ranks third in AUM at $11.376B and remains positive with healthy flows.
âž Whatâs Next?
Lower inflows during the summer months could be attributed to market uncertainty, but the BlackRock IBIT ETF is still showing consistent interest.
The terminal fees vary across platforms but BlackRockâs 0.25% remains competitive.
As long as Bitcoinâs price action is tied to these inflows, weâll see waves of volatility when institutions pull out or inject funds.
With Q4 historically being a more active period, are we prepared for the influence institutions could have in the coming months?
What are your thoughts on Bitcoin's increasing dependency on these inflows?
Can decentralization and institutional control coexist?
Let us know đ
#ETFInflows #CryptoVolatility #InstitutionalInvestors #CPI_BTC_Watch