Bitwise Chief Tackles Jim Bianco on Bitcoin ETF Inflow

Ever since Jim Bianco, CEO of Bianco Research, publicly remarked on the potential of Bitcoin ETFs to attract TradFi (traditional finance) investors and pointed out that ETF holders are recording losses, his comments have sparked responses from various figures in the crypto community. One notable reaction came from Matt Hougan, Chief Investment Officer of Bitwise, who analyzed Bianco’s statements and offered insights based on current market conditions.

Bianco had reported that the average trade volume of Bitcoin ETFs had dropped below its previous low from March 2024. With an average trade volume of around $12,000, Bitcoin ETFs seem to have attracted fewer institutional investors and more small-holding investors compared to other ETFs, such as SPY.

However, Matt Hougan disagreed with Bianco’s assessment. In his response, Hougan pointed out that no recently launched ETFs have attracted more investors than Bitcoin ETFs. According to an analysis from iShares Bitcoin Trust, net flows from advisor investments have totaled approximately $1.45 billion.

That said, Hougan did agree with Bianco on the notion that $1.45 billion is relatively small compared to the $46 billion in net inflows recorded by Bitcoin ETFs. He further explained that if we exclude all other factors related to Bitcoin ETFs and focus solely on inflows from investment advisors, the iShares Bitcoin Trust (IBIT) can claim a strong position as one of the fastest-growing ETFs launched in 2024. IBIT ranks second only to KLMT, which saw a single investor inject over $2 billion in seed capital, though without any involvement from investment advisors.