Where Have All The Boomers Gone? Not To Bitcoin ETFs

• Bitcoin ETFs have underperformed expectations. Despite initial excitement, they haven't significantly driven crypto adoption.
• Over $1B Bitcoin ETF outflows underscore minimal participation from institutional investors.
• Most $BTC ETF inflows come from existing crypto holders instead of new investors.
• Key analysts remain optimistic but suggest it will take Bitcoin ETFs more development and time to mature, possibly until 2028.

If you build it, they will come.' So says the ancient wisdom - but they built $BTC ETFs, and the legendary boomer investors haven't come.

What went wrong with $BTC ETFs? And where does the market go from here? Let's take a peek into the ETF market and see where all the boomers have gone.

Are Bitcoin ETFs Really a Sign of Broader Adoption?

Tracking $BTC ETF flows is a recipe for a headache -they're going up, barreling down, or flying all over the place.

However, one narrative has been consistent throughout the chaos: whatever happens to $BTC ETFs, their very existence is a sign of growing crypto adoption.

And not just any adoption, either, but crypto adoption by the same financial institutions that dominate so much of modern society. If TradFi goes crypto, surely everyone else will...right?

But there's a new narrative emerging, one highlighted by analysts like Jim Bianco of Bianco Research. Interest in $BTC ETFs is great and all, but it simply isn't being driven by traditional investors.

Put another way, the boomers haven't come to $BTC ETFs.

Where Have All the Boomers Gone?

It's no secret that crypto owners skew younger. The hope has always been that older investors would enter the market as crypto investment tools expand (including TradFi financial vehicles like ETFs).

But the fact remains that only 8% of crypto holders are 54+.

Source: Triple A

Add those demographic stats to the current ETF outflows, and you start seeing the worrisome picture in all its glory.

Around85% of the current $BTC ETF holdings are not from TradFi institutions, meaning the majority of early ETF investors are largely crypto natives.

So, have $BTC ETFs failed?

It depends on who you ask. One argument says that with $20B+ in Blackrock's $IBIT ETF alone, failure' is simply too strong a word.

Another sees the lack of true institutional investors and worries that the early $BTC ETF splash is just that - a ripple, not a wave.

But there's a critical point there: both $BTC and $ETH ETFs are in the earliest of early stages.

Verdict - $BTC ETFs Outperform $ETH ETFs; Poised for Growth?

Crypto is not a mature market. It's been around for under a decade, and while $BTC and $ETH (among others) have experienced meteoric growth, the overall crypto economy is still in its infancy.

It's too early to say that $BTC ETFs have failed. Funds like $IBIT show slowing inflows but are nowhere close to failing. Those flows could also turn around rapidly if the Fed lowers interest rates as expected.

Lack of fresh capitalhas dampened the market's growth. With time (perhaps several years), Bitcoin ETFs could become a more influential financial instrument in the cryptocurrency space.

Patience and technological evolution remain key to their success, so we'll have to wait and see what happens next.

References

• Crypto Ownership Report (Triple-A)
• Bianco Research on X (X)

The post Where Have All The Boomers Gone? Not To Bitcoin ETFs appeared first on The Tech Report.