Bitcoin (BTC) is generating a plethora of memes this week, and it’s not just because of the “4/20” halving date. The success of spot Bitcoin exchange-traded funds (ETFs) has led market observers to view this halving as “almost too perfect.” Despite the sideways movement of BTC’s price, its timing has given some the impression that it was destined to happen this way.
In a post on X (formerly Twitter), Eric Balchunas, a dedicated ETF analyst at Bloomberg Intelligence, pointed out an interesting coincidence on the halving day. Not only did this significant event occur on April 20, which is already a meme-worthy date, but the largest US spot Bitcoin ETF also experienced 69 consecutive days of inflows. Balchunas summarized this alignment as “a little too perfect.”
Although Bitcoin ETFs have seen a decline in inflows since reaching their peak in March, BlackRock’s iShares Bitcoin Trust (IBIT), the largest ETF in terms of assets under management, has not experienced a single day of outflows. Recent data from Farside, a UK-based investment firm, indicates a tentative return of momentum towards the end of last week. On April 19, IBIT received nearly $30 million in inflows, while the second-largest ETF, operated by Fidelity Investments, received nearly $55 million.
Outflows from the Grayscale Bitcoin Trust (GBTC), which has been a topic of debate, were relatively modest on that day at $45.8 million. The performance of Bitcoin ETFs has divided opinions. Recent form 13F filings have raised concerns that these ETFs have not gained enough traction among mainstream investors. Jim Bianco, creator of macro research firm Biacno Research, described it as a “disappointment” when discussing first-quarter allocation data. He also noted that unrealized gains are diminishing rapidly compared to the current BTC price action.
However, Balchunas countered this by suggesting that asset managers view these products like “hot sauce.” He highlighted that IBIT currently has around 60 reported holders, accounting for only a tiny 0.4% of total shares. It seems that the story of Bitcoin ETFs is still unfolding, and investors should conduct their own research before making any decisions.