Key Takeaways:
- Eric Balchunas mentioned spot Bitcoin ETFs may collectively maintain extra BTC than Satoshi Nakamoto inside a 12 months.
- Balchunas addressed the Trump meme coin ETF submitting, calling its approval unprecedented and probably delicate for the SEC.
- The ETF business is predicted to increase into basket merchandise mixing BTC, ETH, altcoins, and meme tokens.
At Bloomberg’s ETFs in Depth occasion on June 18, Senior ETF Analyst Eric Balchunas mentioned spot Bitcoin ETFs may collectively maintain extra Bitcoin than the quantity attributed to Bitcoin’s creator Satoshi Nakamoto inside a 12 months.
Satoshi is estimated to regulate round 1.1 million BTC, or roughly 5% of the overall provide. Balchunas advised ETF holdings could ultimately exceed that share if present flows proceed.
Bitcoin ETF and New Launch Tsunami
The session additionally coated the tempo of ETF launches. The U.S. market is predicted to see practically 1,000 new ETFs launched in 2025, in response to Balchunas, who described the exercise as a “New Launch Tsunami.”
Although crypto ETFs nonetheless make up a small fraction of whole ETF property, he famous they generate disproportionate consideration, saying they signify “1 % of the asset however take up 50 % of my thoughts.”
Balchunas mentioned platforms like Constancy and BlackRock have performed a job in shaping mainstream adoption of crypto ETFs by interesting to older traders. He described Constancy’s strategy as talking “excellent boomer language,” and advised that Larry Fink’s participation has helped ease issues following occasions such because the FTX collapse.
Addressing investor habits, Balchunas mentioned it’s a false impression that conventional ETF holders, together with older traders, usually tend to promote throughout market downturns. As a substitute, he argued that these traders have usually proven long-term holding habits.
Whereas institutional crypto funds proceed to develop and retail traders proceed to carry, he anticipated the liquidity of Bitcoin to drop.
ETFs in Depth Day at Bloomberg London. See you quickly if you’re attending. pic.twitter.com/k4gWOdsOlh
— Eric Balchunas (@EricBalchunas) June 18, 2025
Fact Social ETF and Trump Meme Coin ETF
On the subject of latest crypto ETF filings, Balchunas mentioned two latest developments linked to Trump, one involving Fact Social’s submitting for a Bitcoin and Ethereum ETF, and one other associated to a proposed “Trump meme coin” ETF.
Talking of the Fact Social submitting, he mentioned, “Clearly Trump isn’t gonna handle himself, however simply the truth that his firm is launching a Bitcoin ETF, I’d say it’s surreal.”
“However there’s no problem in it getting accepted as a result of it’s. Similar to the opposite ones which are already out there,” he mentioned.
The proposed Trump-themed meme coin ETF, nevertheless, raised extra regulatory questions. Balchunas described it as a product with restricted use and mentioned its approval can be uncommon.
“That is nearly like approving a baseball card or Pokémon card,” he mentioned, including that rejecting it may result in delicate optics for the SEC if headlines framed the choice as blocking a coin tied to the president.
He mentioned the ETF business will proceed to experiment with baskets and different combos like how Fact Social’s ETF holds 75% of Bitcoin and 25% of Ethereum, together with altcoins and meme tokens, in the hunt for buildings that join with retail traders.
“Crypto is gonna get the total ETF therapy,” the analyst mentioned. “I wager one or two basket ETFs [will] do very nicely.”
Incessantly Requested Questions (FAQs)
Why do crypto ETFs appeal to outsized consideration regardless of restricted whole property?
Crypto ETFs stay a small portion of the broader ETF market however generate appreciable curiosity attributable to their volatility, political associations, and market implications. Analysts and institutional gamers watch them carefully for indicators of adoption and sentiment shifts.
What makes the Trump meme coin ETF proposal controversial?
Balchunas famous that approving a meme coin tied to a sitting or former president, notably one with little obvious utility, may set a regulatory precedent for potential meme coin ETF functions.
What are basket crypto ETFs, and why would possibly they develop in recognition?
Basket ETFs embody a number of digital property, like Bitcoin, Ethereum, and altcoins, in a single product. These enable traders publicity to a broader vary of cash with out particular person analysis.
The submit Bloomberg Analyst: Bitcoin ETFs May Quickly Maintain Extra Than Satoshi appeared first on Cryptonews.