Analyst: Wall Street sales force cushioned BTC ETF outflows during price drop

The relatively small net outflows from spot Bitcoin ETFs during the recent price downturn can be attributed to the efforts of Wall Street's sales force, Bloomberg ETF analyst Eric Balchunas said on a recent podcast. He explained, "There's an army of traditional Wall Street salespeople out there selling these BTC spot ETFs. That's why assets under management for these funds dropped by less than 10% even when BTC's price fell significantly." Balchunas suggested their pitch was likely along the lines of, "BTC is a pretty volatile asset, but don't try to trade it—just hold it, because fiat currency will continue to lose value." He added that BTC holders tend to exhibit "smart money" characteristics. "Gold spot ETFs also had a very successful start before experiencing a sharp decline, and the stock market was no different," Balchunas noted. "ETFs bring liquidity and provide the power to help the related asset eventually rise."