ETF Tracker Update: ETFs’ Growth Rate!
Tracking Changes in Bitcoin Holdings
Dear Fellow Bitcoiners,
This week, I'm excited to share an enhancement to our ETF Tracker, tracking the ETFs' Growth Rate! Building on the original chart, I've added a second one for even more detailed insights! In my previous newsletter, I introduced the ETF Tracker – a live chart monitoring the cumulative sum of all ETFs' Bitcoin holdings. You can revisit the previous newsletter here:
The Significance of the ETF Tracker
ETFs play a pivotal role in Bitcoin's adoption, providing institutions with a gateway to allocate funds to BTC. Tracking ETF inflows becomes a critical metric in navigating the upcoming bull market. To be fully prepared, now is the time to comprehend these flows and stay ahead of the curve.
Recent Trends and Shifts
In the aftermath of the ETF approvals, we’ve witnessed substantial inflows across the newly approved funds, except for Grayscale. The decade-old GBTC trust, having undergone a conversion into an ETF, experienced significant outflows, driven by intense fee competition and FTX's complete sell-off of their shares. Currently, these opposing flows have been somewhat neutralizing each other. The subsequent chart illustrates how Grayscale's initial outflows are gradually diminishing, pushing the growth rate into net positive territory.
Tracking the ETFs' Growth Rate: Daily Change in Bitcoin Holdings
To delve deeper into the dynamics of the combined holdings, the chart below tracks the daily changes in the ETFs’ holdings in detail.
The live version of this chart is available for paid subscribers.
Interpreting the Chart
The chart’s red/green line represents the daily change in the combined holdings of all ETFs. For example, +5000 indicates a 5k BTC inflow to the ETF issuers. A -5k in GBTC and +9k for the others results in a net increase of +4k. A net 4k BTC positively impacts the price as these Bitcoins are taken off the market (although likely through the Over-The-Counter market).
For enhanced clarity, I've included the GBTC outflow shown in gray and the combined inflows of other ETFs are marked in blue.
Key Insights
Grayscale’s outflows show a gradual slowdown (indicated by the narrowing gray area).
Other ETFs have seen substantial inflows, currently as much as 9,000 BTC in a single day.
Currently, 4,000 BTC on a daily basis are taken off the market due to ETFs.
Unlock Full Access to the ETFs’ growth rate and many other charts and indicators.
Final Thoughts
The higher the inflow into these ETFs, the more Bitcoin is taken off the market. To emphasize the investor base of these ETFs, let’s revisit the U.S. wealth distribution:
Self-directed retail investors, managing their own finances, account for 20%.
Institutions, including pensions and 401ks, hold 40%.
The remaining 40% is managed by financial advisors on behalf of others.
This new gateway now provides access to 80% of Americans who previously faced challenges investing directly in Bitcoin due to custody complexities.
Only three weeks have passed since the ETF approval, and more ETF tracking will follow in the coming weeks and months. 👊
Let me know your thoughts on the chart above in the comments below! Feedback and ideas for further enhancements are always welcome.
Until next week! 🧡
-Root
This is a fantastic tool Root, that will enable us to better track adoption through the ETF's and to have a much better understanding of the inflows and price. Thanks so much for you continued time and effort to create more and more unique tools/indicators for us to understand the asset class much better and to time our entries and exits, hopefully ahead of the non hodling crowd.
Not just speaking for myself, but I'm sure the whole Bitcoin Strategy community appreciates you. ♥️
Great resource to have. Thanks for adding this. I wonder how quickly this we decrease the supply. Will be interesting to watch.