Crypto Is In A Bear Market… So Why Aren’t ETF Investors Selling? w/ James Seyffart

Summary

Bloomberg ETF analyst James Seyffart examines the crypto bear market, explaining that Bitcoin ETF outflows are partly from basis trade unwinding and long-term holders remain steady. He highlights Hyperliquid as a standout with strong ETF inflows and a compelling buyback narrative. The discussion also covers upcoming SpaceX IPO index rule changes and the broader institutionalization of crypto.

• Bitcoin ETFs have experienced 12 consecutive days of outflows totaling nearly $4 billion.
• Outflows are partially attributed to hedge funds unwinding basis trades as yields compressed.
• Long-term ETF holders (advisers and retail) are not selling significantly.
• Hyperliquid ETFs have launched successfully, amassing over $141 million in inflows within a month.
• Hyperliquid's fee-burn mechanism is likened to a share buyback program, appealing to traditional investors.
• Solana ETFs have accumulated $1.6 billion in net inflows despite a 70% price decline.
• Index providers (Nasdaq, FTSE Russell, S&P) are accelerating rules to include SpaceX, OpenAI, and Anthropic post-IPO.
• The crypto industry is increasingly institutionalized with a focus on revenue and profitability narratives.