The new US spot bitcoin ETFs, which launched in January after gaining the SEC’s approval, have dramatically shifted the crypto industry landscape, and appear to be in the process of altering traditional finance.
In fact, the new ETFs have been unprecedented in their levels of attention and initial demand over their first two months, and are leading to an urgent need for deeper analysis of bitcoin and crypto among traditional financial firms.
The global trading and investment firm Exante, providing access to markets encompassing shares, ETFs, currencies, metals, and bonds across more than twenty locations, exemplifies this trend. Recognizing that offering ETFs also entails providing access to BTC, Exante has been quick to get to grips with bitcoin as a legitimate new asset class.
Focused on Crypto ETF Analysis
Exante is publishing a digest titled “The Crypt,” which focused on crypto ETFs, with analysis based on the firm’s proprietary data along with insights curated from third parties, and the first issue, published this month, provides useful data, analysis and speculation on how the BTC ETFs have been performing and where they might be headed from here.
The digest got straight to the point from the first paragraph and set a bullish tone when it explained: “Our clients are jumping in wholeheartedly, investing more into these new ETFs, as a percentage, than the market average. An example of this is on Monday, 11 March when Bitcoin hit a new high, our clients’ AuM was +11.18% day-over-day compared to the Total market AuM which was actually -0.97%.”
This ties in with recent analysis from JP Morgan which compared BTC ETFs with gold ETFs, and noted that even as bitcoin funds have seen strong inflows, gold ETFs have seen movement in the opposite direction. In short, when it comes to ETFs, bitcoin is catching up with gold, and there’s the suggestion that attitudes towards the new bitcoin funds are detached from broader sentiment.
“Led by the newly created spot bitcoin ETFs, bitcoin funds saw an inflow of $10.6bn YTD vs. an outflow of $7.6bn for physical gold ETFs.”
– JPMorgan pic.twitter.com/WXahLyBqAK
— Daily Chartbook (@dailychartbook) March 18, 2024
It’s apparent also, in Exante’s data, that the firm’s clients are switching from previously existing bitcoin products, into the new ETFs.
Chart from Exante
It seems, then, that not only are the newer products creating fresh demand, but they’re also exercising a pull on investors who were…
