Ruth
Saldanha:
It’s
been
a
month
since
the
US
saw
the
launch
of
bitcoin
ETFs,
with
much
fanfare
and
drama,
it
must
be
noted.
Billions
of
dollars
flowed
into
these
funds,
it
is
true.
But
how
much
exactly?
And
who
garnered
the
most
money?
Sylvester
Flood
is
a
senior
product
manager
for
Morningstar,
and
he
closely
tracks
funds
flows.
He’s
here
today
to
talk
about
the
flows
into
bitcoin
ETFs.
Syl,
thank
you
so
much
for
being
here
today.
Sylvester
Flood:
Glad
to
be
here,
Ruth.
Good
to
see
you.
How
Much
Money
Did
the
New
U.S.
Bitcoin
ETFs
Actually
Get?
Saldanha:
So,
let’s
start
with
the
most
important
question.
How
much
money
went
into
these
newly
launched
spot
bitcoin
ETFs?
Flood:
Well,
Ruth,
quite
a
bit.
It
was
a
bit
of
a
slow
start.
But
since
they
launched
on
January
11th,
the
tally
is
up
to
$7.7
billion.
How
Many
Bitcoin
ETFs
Are
There,
And
Did
They
All
Get
Inflows?
Saldanha:
How
many
of
these
bitcoin
ETFs
exist
and
are
all
of
them
counted
towards
the
flows
that
we
have?
Flood:
Good
question.
So,
there
are
10
new
spot
bitcoin
ETFs
and
there’s
one
ETF
that
had
existed
already
that
converted
to
a
spot
bitcoin
ETF
called
Grayscale
Bitcoin
Trust.
It
was
very
large.
It
converted
around
the
12th
of
January.
So,
they
actually
had
outflows
from
that
Grayscale
fund
mainly
because
the
shareholders
in
that
fund
had
purchased
the
shares
in
it
but
couldn’t
redeem
them
at
full
value
of
the
underlying
Bitcoin.
So,
once
they
had
the
opportunity
to
do
that,
they
did
it.
So,
the
outflows
from
that
Grayscale
fund
have
actually
been
significant,
about
$5
billion,
but
they
expected
that.
So,
it’s
not
a
surprise.
The
launches
of
the
10
new
ones,
I
would
say
have
been
very
successful.
The
bitcoin
or
the
crypto
community
had
expected
probably
more
flows,
but
from
a
mutual
fund
flows
standpoint,
drawing
in
over
$7
billion
in
less
than
a
month
is
a
big
success.
How
Are
Bitcoin
ETF
Flows
Calculated?
Saldanha:
Help
us
understand
these
flows
numbers.
How
do
you
calculate
them?
Flood:
It’s
pretty
simple.
Every
day
ETFs
publish
a
NAV,
end
of
day
NAV,
net
asset
value,
just
like
a
mutual
fund
does.
They
also
supply
us
with
shares
outstanding
and
the
flows
are
just
the
difference
from
day
to
day
between
the
shares
outstanding
and
that
asset
value
and
that
gives
us
actually
the
actual
flow
into
and
out
of
these
funds.
How
Much
of
the
Bitcoin
ETF
Flows
is
Net
New
Money?
Saldanha:
So,
let’s
talk
a
little
bit
about
that
Grayscale
fund
and
other
funds
like
it.
How
much
of
this
is
net
new
money
and
how
much
of
it
is
just
flowed
from
one
ETF
into
another?
Flood:
We
can
only
guess
at
that
because
the
identities
of
the
buyers
and
sellers
are
not
known
to
us
and
really
no
one
knows.
But
my
guess
would
be
that
very
little
of
the
new
money
is
coming
from
the
Grayscale
shareholders.
There
wouldn’t
really
be
any
reason
for
them
to
leave
that
one,
that
bitcoin,
spot
bitcoin
fund
and
go
to
the
others,
except
that
the
Grayscale
fund
has
very
high
expenses
of
1.5%,
I
think.
I
would
imagine
that
expenses
going
to
–
they’re
going
to
have
to
change
it
just
to
be
competitive.
The
other
new
funds
have
expenses
which
are
about
one
fifth
to
one
sixth
as
much
as
the
Grayscale
fund.
So,
I
think
that
net
new
of
that
$7.7
billion
most
of
it
is
new
money.
Will
More
Money
Flow
Into
the
New
Bitcoin
ETFs?
Saldanha:
Interesting.
Now
you
said
at
the
start
it
was
a
bit
slow
and
then
it
kind
of
spiked
a
little
bit.
At
this
stage,
do
you
think
that
the
flows
have
reached
about
a
plateau
for
these
new
bitcoin
ETFs?
Flood:
I
think
they’re
going
to
keep
coming
in
because
especially
in
the
US
market
there’s
long
been
demand
by
clients
of
their
advisors
to
give
them
bitcoin
positions
in
their
portfolios.
And
some
of
the
platforms
here
developed
ways
for
advisors
to
do
that
over
the
years.
They
were
still
a
little
bit
obtuse
and
kind
of
strange
for
the
advisors
to
deal
with.
They
did
it
though,
but
you
just
couldn’t
look
up
your
position
in
bitcoin
like
you
could
a
stock
or
a
fund.
Basically,
what
they’ve
done
now
is
created
kind
of
an
easy
button
for
advisers.
If
the
clients
are
familiar
with
the
ETF
structure,
all
they
have
to
do
is
say
great
there’s
an
ETF
now
that
we
can
use
to
give
you
a
position
in
bitcoin
and
frankly
that’s
going
to
be
really
attractive
to
advisers.
And
advisers
just
don’t
jump
in
and
out
of
things.
And
so,
I
think
over
time,
especially
over
the
next
quarter
which
is
the
cycle
in
which
advisers
work
with
clients
and
make
adjustments
to
their
portfolios.
You’re
basically
going
to
see
a
steady
inflow
stream
into
these
spot
bitcoin
ETFs
coming
through
advisors.
Saldanha:
We’ll
ask
again
in
a
quarter
how
much
that
is.
Thank
you
so
much
for
joining
us
today,
Syl.
Flood:
Oh,
you’re
welcome,
Ruth.
Anytime.
Saldanha:
For
Morningstar,
I’m
Ruth
Saldanha.
The
author
or
authors
do
not
own
shares
in
any
securities
mentioned
in
this
video.
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