Bitcoin ETF Inflows Hit $1B Daily Amid Advisor Demand Surge
Bloomberg's James Seyffart believes nearly $1 billion in daily inflows into Bitcoin ETFs could be a significant indicator of increased demand for the asset. He notes that advisors at firms like Morgan Stanley and JPMorgan are still restricted by wirehouse rules from buying Bitcoin ETFs for clients, despite an $82,000 ETF cost basis.
According to Seyffart, even a small shift in allocation from the estimated $30-40 trillion in advisor-managed wealth could create significant upward pressure on the price of Bitcoin. He argues that advisors chose to wait out the bear market and are now looking to allocate funds to new assets like Bitcoin.
Seyffart also discussed the impact of hedge fund basis unwinds and ETF flows on Bitcoin's price dynamics, stating that these factors could be contributing to the asset's volatility. However, he emphasized that wirehouse rules remain a major barrier to advisors buying Bitcoin ETFs for clients.