Bitcoin ETFs, launched in the US earlier this year, need more time to become an instrument of adoption instead of a small tourist tool, says former Wall Street analyst and Bianco Research CEO Jim Bianco.
Prospects of Bitcoin ETFs in the US
Jim Bianco expressed skepticism about spot Bitcoin ETFs living up to the pre-approval hype since their launch in January. He mentioned recent outflows, holders losing on their positions, and a lack of major institutional investment as signs that the Bitcoin ETF market might need more time to mature.
Expert Opinions on the Market Status
There has been over $1 billion in net outflows from the 11 US Bitcoin ETFs in the last eight trading days, according to Farside Investors data. The spot Bitcoin ETF market now sits at around $48 billion in assets under management, down from its peak of $61 billion in March.
The Future of Bitcoin ETFs
Bianco speculates that the next Bitcoin halving in 2028 and a significant development of onchain tools will likely be needed before the market truly hits its stride. "Patience and another couple of seasons, including a winter or two, and development breakthroughs are needed first," he added.
Not all experts agree with Bianco's assessment. Bloomberg senior ETF analyst Eric Balchunas noted that Bitcoin ETFs had billions of assets under management after eight months. Other analysts also express hopes for significant institutional investments in the future.
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