-
U.S.-traded
spot
bitcoin
ETFs
saw
$1.2
billion
in
outflows
between
Aug.
27
and
Sept.
6. -
This
marked
the
longest
streak
of
outflows
since
the
launch
of
the
funds,
but
it
signals
nothing
but
healthy
growth,
an
expert
said.
-
02:14
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in
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Bitcoin
Trading
Volume
Jumped
to
$2.8T
in
January
to
August
Period -
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Bitcoin
Is
a
‘Beachball’
Being
Pushed
Underwater
Now:
Samson
Mow
The
recent
plunge
in
the
price
of
bitcoin
(BTC)
was
accompanied
by
a
sizable
amount
of
net
outflows
from
the
12
U.S.
spot
exchange-traded
funds
(ETFs).
While
on
its
face,
that
might
appear
worrisome,
it’s
more
likely
a
sign
of
healthy
growth.
“This
is
going
to
be
two
steps
forward,
one
step
back,”
Eric
Balchunas,
senior
ETF
analyst
at
Bloomberg,
said.
“That’s
the
way
many
ETF
categories
are
born
and
mature,”
he
added.
“Nothing
goes
up
in
a
straight
line
–
flow-wise
–
ever
because
ETFs
service
long
term
investors
and
traders.”
The
funds
bled
roughly
$1.2
billion
worth
of
bitcoin
between
Aug.
27
and
Sept.
6,
according
to
data
from
Farside
Investors.
At
eight,
that
was
the
most
consecutive
days
of
net
outflows
that
the
ETFs
have
experienced
since
launching
on
Jan.
12.
The
$1.2
billion
represented
roughly
3%
of
total
assets
in
the
funds,
which,
according
to
Bianco
Research,
stood
at
$46
billion
after
the
outflows.
Balchunas
said
a
worrisome
number
would
be
more
like
15%-20%.
The
ETF
issuers
have
mostly
been
blessed
with
sizable
amounts
of
cash
flowing
into
their
newly-opened
funds.
In
their
first
two
months
of
trading,
the
ETFs
saw
net
inflows
totallng
$12
billion,
according
to
Bianco
Research.
Not
as
bullish
on
the
funds
as
Balchunas,
Bianco
noted
that
the
pace
of
inflows
has
since
slowed,
with
just
$4
billion
of
new
money
over
the
next
six
months,
including
only
$1
billion
over
the
past
three
months.
“The
key
to
building
a
category
isn’t
so
much
taking
in
money
when
there’s
good
times,
but
it’s
limiting
the
outflows
at
bad
times
and
I’ve
seen
these
Bitcoin
ETFs
do
a
great
job
in
the
latter,”
Balchunas
said,
referring
to
recent
large
price
sell-offs
associated
with
Mt.
Gox
and
the
German
government,
during
which
the
ETFs
quickly
reverted
to
inflows
after
seeing
only
modest
exits
of
money..
“The
[ETFs
have]
really
done
a
good
job
keeping
bitcoin
out
of
the
abyss,”
said
Balchunas.
“They
have
saved
bitcoin’s
butt
a
couple
times
in
the
past
couple
months,
from
real,
real
depths.”