Market Musings - Bulls Attempt To Take The Initiative

Welcome our second edition of Market Musings, a weekly publication that aims to keep our readers up-to-date on the most important and timely crypto market happenings. We’ll be iterating on this product as we go along, so please give us any feedback or suggestions for topics you’d like to see make an appearance in this new weekly note.

BTC Spot ETFs — Recovery After A Tough Week Of Outflows

As we stated last week, now that BTC Spot ETFs are live, market participants have started to speculate on actual demand versus the potential demand that existed prior to launch. This is a subtle, yet important distinction. Reminder, Delphi’s BTC Spot ETF Flow Tracker can be found here.

Last week, we discussed just how much the BTC market has weighted ETF flows since these products launched, specifically the relationship between flows and price performance. This time last week, we were coming off the first week-long period of sustained ETF outflows, which clearly weighed on BTC’s performance.

Since then, flows have begun to recover, stemming much of the bleeding seen in the prior week. But this recovery has yet to show any real staying power, as flows eventually petered back into flat territory the last several days.

As always, the clear standouts with respect to ETF providers continues to be Blackrock (IBIT) and Grayscale (GBTC). IBIT consistently attracts the lion’s share of capital looking to allocate to this new asset class, while GBTC consistently leads in net outflows (due to the structure and fees of the GBTC pro