Looking at a new post by senior Bloomberg ETF analyst, Eric Balchunas, one may say that he has seen it all. Market swings, ETF surges, panic-driven sell-offs. So when Bitcoin ETFs saw a staggering $1.8 billion in outflows last week, Balchunas was not exactly rushing to hit the alarm button.
In his view, this is just another day in the world of ETFs, where movement is constant, sentiment shifts, and yet, the long-term trajectory remains up.
Yuri MolchanWhat really happened? Well, Bitcoin exchange-traded funds saw a single-day withdrawal of $938 million - undeniably a big number. Fidelity’s FBTC took the hardest hit, with $345 million pulled, while IBIT by BlackRock was not far behind at $164 million. Bitwise and Grayscale’s mini ETF? Both down by roughly almost $90 million each.
Step back
And yet, Balchunas is not worried. He breaks it down in a way that makes the panic seem almost unnecessary. These outflows? Less than 2% of total assets. The remaining 98% is still there. It is not exactly a mass exodus.
Investors are not abandoning Bitcoin ETFs in droves - they are adjusting, rebalancing, reacting to short-term conditions. It is how the market works.
What makes this even more interesting is the contrast. While Bitcoin ETFs saw money leaving, the broader ETF market saw a massive influx - $13 billion flowed in on the very same day. Investors were not running away from risk; they were reallocating, positioning themselves for the next move.
Gamza KhanzadaevBalchunas describes this as the usual rhythm - two steps forward, one step back. It is not a collapse or the end of Bitcoin ETFs. It is a normal cycle, something investors should get used to.
Those who stay focused on the bigger picture will see what he sees: a market that moves, shifts and sometimes shakes, but ultimately keeps on going.
Dan Burgin
Vladislav Sopov