Anatoly Crachilov’s Post

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CEO & Founding Partner at Nickel Digital Asset Management

💥 $100 billion milestone achieved! In the recent post, marking the 9-month anniversary of the #Bitcoin #ETF launch, I noted the record expansion path these newly launched instruments have taken, smashing almost every ETF industry record - going as far back as the 1990s.    Just three 3 weeks on, we might have underestimated the power of the incoming wave! 😅 Indeed, the combined AUM of spot Bitcoin ETFs have surpassed $100bn this week, just within 10 months (!) of launch. This is twice as fast as Bloomberg initially predicted and puts them at 82% of AUM of all gold ETFs combined—which were launched over 20 years (!) ago. Needless to say, ETFs have been buoyed by renewed financial optimism in the post-election landscape. In a short two weeks since the US elections, there were 3 days delivering inflows above $1bn each. BlackRock's IBIT alone posted $1.1bn inflows in the wake of election results and topped $600m inflows two days in a row this week. Although IBIT continues to lead the way, other funds have started catching up. On Tuesday, no fewer than three funds (IBIT, Fidelity Investments’s FBTC, and ARK Investment Management LLC’s ARKB) showcased inflows above $200m ($216m, $256m, and $267m, respectively). Perhaps the biggest news this week was #options going live on Nasdaq for Bitcoin ETFs, introducing a whole new flow of potential liquidity to the asset; and launch signalled continued long-term optimism in the asset, as IBIT options registered $1.9bn in notional exposure, with a very healthy 4.4:1 Calls to Puts ratio. As Bloomberg's chief ETF analyst Eric Balchunas said, it is "unheard of for Day One". He added further, "You cannot overstate their importance. More traders involved, more liquidity, and liquidity is 'big fish' bait, so you should see more institutions using not only the options but the ETFs themselves. Nasdaq’s head of ETP listings, Alison Hennessy, said the move was driven by tangible demand (“Getting these options listed on IBIT into the market I think will be very exciting for investors because that’s really what we have heard from them”), and Galaxy head of research Alex Thorn believes “options will help dampen volatility and and as volatility comes down people can take larger position sizes”.   Alongside the standard-bearer spot Bitcoin ETFs, crypto interest has intensified demand for other exposure vehicles; such as Cboe Global Markets announced cash-settled Bitcoin index options, filings for spot #Solana ETFs (potentially providing institutional access to the second-largest smart contract blockchain), and various novel funds such as a 2x MicroStrategy volatility ETF or Calamos Investments' "Bitcoin 80% Protection Strategy ETF", which seeks “to provide Bitcoin exposure that has a maximum loss of 20%” (with a capped upside to pay for the downside protection). Not only are spot ETFs growing, but the entire ETF complex is on fire! #digitalassets #evolution

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Anatoly Crachilov

CEO & Founding Partner at Nickel Digital Asset Management

1mo

Source: https://x.com/EricBalchunas/status/1858994117617086840

Anatoly Crachilov

CEO & Founding Partner at Nickel Digital Asset Management

1mo

Source: Spot Bitcoin ETF Options Are Here. Why You ‘Can’t Overstate’ Their Importance: https://x.com/laurashin/status/1860000504509616577

Source: Bloomberg data (credit Eric Balchunas): https://x.com/EricBalchunas/status/1859573968430059944

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