Bitcoin investment

Bloomberg analysts: Traditional financial institutions are interested in Bitcoin ETFs, which helps improve liquidity and demand

ChainCatcher news, according to Decrypt, data shows that over the past four years, among the 1,800 ETFs that started trading, BlackRock's IBIT has seen the highest inflow of funds. Bloomberg ETF analyst James Seyffart believes that the rapid influx of funds is partly due to investors wanting to invest in Bitcoin for some time, but they lacked a safe or simple way to invest before the ETF was approved. Now that the ETF has started trading, this demand is quickly entering the market.He stated, "I think part of this is pent-up demand, but as people learn more, it's also new demand. Traditional financial institutions are also interested in these products—including hedge funds participating in futures trading. This helps improve flow and demand." He added that hedge funds have been going long on ETFs and then selling futures contracts.Meanwhile, the performance of Ethereum spot ETFs has been less than satisfactory. Farside data shows that so far, 9 ETFs have seen a cumulative net outflow of $491.9 million. However, this does not mean that demand will not rebound. Investors have put cash into other products, which may indicate that a turnaround is on the horizon.Seyffart added, "It's just that the outflows from Grayscale's ETHE have overwhelmed the inflows into other (Ethereum) ETFs at the moment."
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