COIN - Spot Bitcoin ETFs Are 'Orange FOMO Poker Chips' Jim Bianco Warns | Benzinga
Jim Bianco, founder of Bianco Research, has cast a critical eye on the recent popularity of spot Bitcoin ETFs, painting a picture of these instruments as potentially hindering, rather than helping, the growth of a decentralized financial system.
What Happened: Bianco’s primary observation from the Q1 13F filings was that a mere 3% of the outstanding market capitalization of Spot BTC ETFs is held by investment advisors.
“This significantly undermines the narrative that ‘the Boomers are coming,'” Bianco remarked, emphasizing that the anticipated influx of traditional, older investors into the Bitcoin market did not materialize in the first quarter of 2024.
Instead, approximately 10% of these ETFs are held by hedge funds, with the remaining 85% dominated by retail investors. Bianco noted that this heavy retail participation is a clear indication that institutional investors are still cautious.
“The substantial volume in the Spot ETF could cannibalize on-chain volume,” he warned, referencing Q1 earnings reports from Coinbase (NASDAQ:COIN) that suggested this concern might already be a reality.
Bianco highlighted the discrepancy between the expected and actual behaviors of these ETFs.
Contrary to the belief that ...