U.S Bitcoin Spot ETF hits a total net inflow of $1.01 billion in this week.

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Quote from: nelson4lov on September 29, 2024, 06:50:11 PM

Quote from: Iamgoat on September 28, 2024, 02:08:50 AM

This Thursday, the bitcoin exchange traded funds ETFs hit a substantial daily net inflow of over 360 million dollars making it the largest recorded since late July this year.

Does this mean the USA have increased in its crypto community in terms of its adoption rate or this was due to government effects?

I think this is probably because there's been some chatter that China is making some major moves to improve their economy and will be splashing plenty of money into their markets in the process. If that's the case, the expectation is that risk assets (like Bitcoin) will get plenty of action and US seem very likely to go band for band with China. The ETFs have been getting plenty of inflows since that 50 BPS rate cuts earlier this month.

The global economy is highly interconnected. You might be correct, this proposed policy by the Chinese government might have a ripple effect on the market. Investors will consider investing in risky assets like Bitcoin. I also think that the US interest rate cut also played a significant influence on the market. Interest rate cuts lead to cheap borrowing, more job creation, and economic growth stimulation. Hence we expect people to start investing in diverse areas like the crypto sector in the US. However, I am concerned that the conflict in the Middle East might slow down the crypto industry.

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Quote from: NotATether on September 28, 2024, 02:19:39 AM

ETF inflows are from companies and business users, not individuals. That means Bitcoin is getting more popular only with companies, while it's got the same attractiveness to individuals that it had a few months ago.

I am certainly sure that all those companies are not interested in HODLing Bitcoin, but they just want to make a quick buck off of their investment.

These companies with Bitcoin Spot ETFs buy bitcoins to mint their shares which are sold to their customers. Holding or not, it's up to their customers and if customers want to sell, these companies will sell bitcoin on behalf of customers.

At the end, these companies get revenue from their service fees and there is service fee race among Bitcoin Spot ETFs in the USA. Grayscale did not want to reduce their service fee so there were massive withdraws from Grayscale in first months after Bitcoin Spot ETF approval in January 2024.

https://blockworks.co/bitcoin-etf

These companies can invest their money in bitcoin, but this part is different from what they are holding as equivalence of Bitcoin Spot ETF shares.

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Quote from: NotATether on September 28, 2024, 02:19:39 AM

ETF inflows are from companies and business users, not individuals. That means Bitcoin is getting more popular only with companies, while it's got the same attractiveness to individuals that it had a few months ago.

I am certainly sure that all those companies are not interested in HODLing Bitcoin, but they just want to make a quick buck off of their investment.

If you refer to trading companies only as Hedge Funds you may be right but the rest of the companies if they buy bitcoin will be to have it in their reserves and that does not mean buying today to sell tomorrow, and less with the volatility it has. In addition, if they study the subject a little, selling the most profitable asset, no matter how volatile it is, does not make much sense.

For my part, I hope that it will be noticed in the price, we are only a few sessions away from the ATH if it starts a good rise.

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Quote from: Iamgoat on September 28, 2024, 02:08:50 AM

This Thursday, the bitcoin exchange traded funds ETFs hit a substantial daily net inflow of over 360 million dollars making it the largest recorded since late July this year.

Does this mean the USA have increased in its crypto community in terms of its adoption rate or this was due to government effects?

I think this is probably because there's been some chatter that China is making some major moves to improve their economy and will be splashing plenty of money into their markets in the process. If that's the case, the expectation is that risk assets (like Bitcoin) will get plenty of action and US seem very likely to go band for band with China. The ETFs have been getting plenty of inflows since that 50 BPS rate cuts earlier this month.

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Quote

U.S Bitcoin Spot ETF hits a total net inflow of $1.01 billion in this week.

This is a small number compared to what US bitcoin ETFs have contributed to the market. So far, more than $60 billion has flowed into the market through bitcoin ETFs in just a few short months. This shows their influence on the bitcoin market but many people still stubbornly believe that the government will not be able to influence the development of bitcoin. It is true that bitcoin can continue to exist without the US market but I do not believe it can grow strongly without the participation of the US market.

The government is intervening more in the market but without that intervention or without their permission, I don't think mass adoption of bitcoin can happen quickly. That's also the price we have to pay if we want bitcoin to become globally popular.

https://www.coinglass.com/bitcoin-etf

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The US spot Bitcoin ETF market has surged in demand following the Federal Reserve's rate cuts along with BlackRock increasing BTC holdings.

Institutional demand for Bitcoin ETFs remains strong, significantly outpacing daily BTC production.
BlackRock has aggressively increased its Bitcoin holdings, reporting 198,874 shares of its spot Bitcoin ETF (IBIT).
This strong demand of ETF sets the stage for a BTC price bull run in Q4 2024.

https://coingape.com/spot-bitcoin-etf-inflows-cross-1-billion-this-week-blackrock-buys-ibit/

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Quote from: Charles-Tim on September 28, 2024, 01:10:10 PM

Quote from: franky1 on September 28, 2024, 01:05:24 PM

locking coin to custodian to declare shares means they sell shares to customers for fiat and then use fiat to buy more btc to lock more coin

Which literary has no effect on bitcoin price. So which means Blackrock and others that have the bitcoin ETFs may not sell bitcoin even if the bear market is very significant? They just hold it and not buy more at the time until the next bull run? I guess that is how it would be. Very bad.

yes they dont sell coin, they just hold it. but that means there is a inflow gain and not much outflow loss of hoarding

once blackrock sell their creation of shares to secondary managers like robinhood/etoro.. blackrock BUY more coin to create more shares
this means coins have to come from somewhere

when people pay into a pension they are buying and hoarding shares of something. so each month new shares are needed or traded.. thus as long as the demand for shares keeps up the demand for coin keeps up

Quote from: Ambatman on September 28, 2024, 02:30:49 PM

Even in a Bear market they wouldn't sell instead they would slow down accumulation or stop accumulating until demand picks up.
They become like a stabilizing force, they wouldn't add to the sell pressure during a Bear but would add to the buy pressure during a Bull market as more investor would want to get Bitcoin through ETF.

normally smart people buy the bear(dip) and sell the bull(pump)
you know ,, buy low sell high

however ETF do buy low they wont be doing much selling, they instead are a net flow of buy and hoard (inflow and accumulate)

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Quote from: Charles-Tim on September 28, 2024, 01:10:10 PM

Quote from: franky1 on September 28, 2024, 01:05:24 PM

locking coin to custodian to declare shares means they sell shares to customers for fiat and then use fiat to buy more btc to lock more coin

Which literary has no effect on bitcoin price. So which means Blackrock and others that have the bitcoin ETFs may not sell bitcoin even if the bear market is very significant? They just hold it and not buy more at the time until the next bull run? I guess that is how it would be. Very bad.

Yes it doesn't really have an effect like normal buying and selling.
Even in a Bear market they wouldn't sell instead they would slow down accumulation or stop accumulating until demand picks up.
They become like a stabilizing force, they wouldn't add to the sell pressure during a Bear but would add to the buy pressure during a Bull market as more investor would want to get Bitcoin through ETF.

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Quote from: franky1 on September 28, 2024, 01:05:24 PM

locking coin to custodian to declare shares means they sell shares to customers for fiat and then use fiat to buy more btc to lock more coin

Which literary has no effect on bitcoin price. So which means Blackrock and others that have the bitcoin ETFs may not sell bitcoin even if the bear market is very significant? They just hold it and not buy more at the time until the next bull run? I guess that is how it would be. Very bad.

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Quote from: Charles-Tim on September 28, 2024, 12:48:24 PM

Quote from: NotATether on September 28, 2024, 02:19:39 AM

I am certainly sure that all those companies are not interested in HODLing Bitcoin, but they just want to make a quick buck off of their investment.

This would be good if they will invest again. Although, as bitcoin marketcap is increasing, the volatility is reducing. But if bitcoin can get to over $100 thousand and latter fall during bear market to like $30000. This will give another investment opportunity of buying bitcoin at lower price again. It means the ETF may not affect the speculative value of bitcoin.

locking coin to custodian to declare shares means they sell shares to customers for fiat and then use fiat to buy more btc to lock more coin

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Quote from: NotATether on September 28, 2024, 02:19:39 AM

I am certainly sure that all those companies are not interested in HODLing Bitcoin, but they just want to make a quick buck off of their investment.

This would be good if they will invest again. Although, as bitcoin marketcap is increasing, the volatility is reducing. But if bitcoin can get to over $100 thousand and latter fall during bear market to like $30000. This will give another investment opportunity of buying bitcoin at lower price again. It means the ETF may not affect the speculative value of bitcoin.

franky1

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Quote from: NotATether on September 28, 2024, 02:19:39 AM

ETF inflows are from companies and business users, not individuals. That means Bitcoin is getting more popular only with companies, while it's got the same attractiveness to individuals that it had a few months ago.

I am certainly sure that all those companies are not interested in HODLing Bitcoin, but they just want to make a quick buck off of their investment.

the ETF inflows are about how much the ETF trusts are accumulating..

its literally in the title ... ETF ... inflow

..and yes they are hoarding.
as they are locking up that coin(with a custodian) to then register asset ownership with regulators to then register shares that the etf can then sell to individuals, businesses(their customers), and then those individuals can then resell to each other whilst the ETF and custodian just hoards the coins whilst individuals play the secondary etf share market for their pension profits

the data shows that for instance blackrock and fidelity combined accumulated 11k btc in last week whilst greyscale main trust sold off(outflow) 820 coin
other ETF trusts had smaller amount of inflows and some had outflows.. but generally a ETF accumulates more coins than it disposes (bar greyscale as the exception)

..
repeated for emphasis
all news of "etf inflows/outflows" are going to be about the ETF trusts themselves..

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I first saw this news here, but my first thought was that perhaps the Fed has made its move. From articles I've read, it seems I was right. The Fed lowered the rate by 0.5%, and when the rate gets lowered, investors are motivated to buy shares, the stock market tends to recover. Since Bitcoin ETFs are close in their nature to the stock market, it makes sense that there's been a major inflow of money this week. BTC price is also up by almost 5% over the last 7 days.
It's all good news, but also highly dependent on the Fed.

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ETF inflows are from companies and business users, not individuals. That means Bitcoin is getting more popular only with companies, while it's got the same attractiveness to individuals that it had a few months ago.

I am certainly sure that all those companies are not interested in HODLing Bitcoin, but they just want to make a quick buck off of their investment.

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This Thursday, the bitcoin exchange traded funds ETFs hit a substantial daily net inflow of over 360 million dollars making it the largest recorded since late July this year.

Does this mean the USA have increased in its crypto community in terms of its adoption rate or this was due to government effects?

Topic: U.S Bitcoin Spot ETF hits a total net inflow of $1.01 billion in this week. (Read 116 times)