How the Iran war is impacting the cryptocurrency space
Speakers
Todd Rosenbluth
— Head of Research, TMX VettaFI
Summary
Todd Rosenbluth, head of research at TMX VettaFi, discusses crypto ETF trends. He notes that while many advisors remain on the sidelines, a NEOS high-income Bitcoin ETF has seen inflows driven by investor demand for yield. Looking ahead, a potential risk-on environment from geopolitical developments could spur inflows into major Bitcoin ETFs from iShares, Fidelity, Grayscale, and CoinShares.
- Net outflows have been seen across the crypto ETF category overall.
- Financial advisor surveys show many are still on the sidelines, possibly creating a buying opportunity.
- The NEOS Bitcoin High Income ETF (BTCI) has attracted inflows by combining crypto exposure with options-based income.
- If geopolitical tensions ease and a risk-on environment emerges, Bitcoin and crypto could benefit.
- iShares, Fidelity, Grayscale, and CoinShares crypto products could see renewed inflows in that scenario.
Ideas
Inflows into high-income Bitcoin ETF
Investors are combining interest in crypto with a love for income, leading to inflows into the NEOS Bitcoin High Income ETF, which uses options to generate income. This product is attracting flows even as the broader crypto category sees net outflows, suggesting demand for yield-enhanced Bitcoin exposure.
Risk-on could drive crypto ETF inflows
If geopolitical developments lead to a risk-on environment, Bitcoin and crypto in general would benefit and could see inflows into major crypto ETFs such as iShares, Fidelity, Grayscale, and CoinShares products. This is conditional on a resolution that boosts risk appetite.
