- Bitcoin ETFs saw inflows after weeks of outflows, signaling a potential market shift.
- Wealth advisors quickly adopted Bitcoin ETFs, creating significant net flows despite limited institutional participation.
After weeks of continuous outflows, Bitcoin [BTC] Exchange Traded Funds (ETFs) have finally shown signs of recovery.
Between August 27 and September 6, BTC ETFs saw a total outflow of $1,185.9 million, indicating a challenging phase for the asset.
However, on September 9, BTC ETFs recorded net inflows of $28.6 million, signaling a possible shift in market sentiment.
Matt Hougan’s take on Bitcoin ETF
Commenting on this development said Matt HouganChief Investment Officer at Bitwise, noted that wealth advisors are rapidly adopting Bitcoin ETFs, reflecting growing confidence in the asset’s future.
In response to an earlier post from investment researcher Jim Bianco, who offered a contrasting view on BTC ETF adoption, Hougan said:
“Jim is wrong about this: investment advisors are adopting Bitcoin ETFs faster than any new ETF in history.”
Jim Bianco had pointed out that despite growing interest, traditional financial institutions are not accounting for the majority of Bitcoin ETF inflows.
He noted that around 85% of BTC ETF uptake comes from non-traditional funding sources (tradfi), suggesting that while wealth advisors are increasingly adopting Bitcoin ETFs, institutional participation remains relatively limited at this stage.
Source: Jim Bianco/X
Is there more to it?
Hougan contradicted Bianco’s position, noting:
‘According to his [Jim Bianco] Table has attracted IBIT $1.45 billion in net flows from investment advisors. He calls this ‘small’ because it is a fraction of the $46 billion that has flowed into Bitcoin ETFs in total.”
He added:
“But if you exclude all other flows, and just look at the $1.45 billion tied to investment advisors, IBIT would be the second fastest growing ETF launched this year (excluding other BTC ETFs). Out of more than 300 launches!”
Hougan further highlighted that the only ETF that surpasses IBIT in terms of assets is KLMT, an ESG (Environmental, Social, Governance) ETF.
However, KLMT’s large asset size ($2 billion) is misleading, as it was funded by a single investor, rather than through widespread market adoption.
Despite this significant placement, KLMT has very low trading activity, averaging only 250 shares per day, and no adoption by investment advisors.
The growth rate of IBIT
In contrast, IBIT’s growth, while smaller, is driven by a broader base of investment advisors, making its expansion more organic and significant in the broader ETF market.
Adding to his explanation, Hougan said:
“The truth is that investment advisors are adopting bitcoin ETFs faster than any other ETF in history. It’s just that their historic flows are dwarfed by the even more historic purchases of other investors.”
Contradicting Bianco’s statement, he further emphasized:
“It is accurate to say that investment managers represent a small portion of bitcoin ETF buyers. But it is not accurate to say that investment managers’ purchases of bitcoin ETFs are “small.”
Bitcoin’s price action
Meanwhile, BTC has experienced a notable increase of 3.61% over the past 24 hours, pushing its price to $56,873. CoinMarketCap.
This increase is encouraging as BTC was within a tight trading range this weekend.
It now appears that Bitcoin may cross the $56,000 threshold. AMoreover, the MACD line is approaching the signal line, indicating a possible bullish crossover.
However, the RSI, currently at 45 and parallel to the neutral line, indicates that there is still bearish momentum, indicating cautious optimism going forward.
Source: trading view