According to Bloomberg Analyst Baby Boomers Excel at Holding On to Their Cryptocurrency Investments
According to Bloomberg ETF analyst Eric Balchunas, Baby Boomers are proving to be better hodlers of Bitcoin spot ETFs than initially expected. On Tuesday, Balchunas commented on the positive flows in the Bitcoin spot ETF market. In a post on X, he highlighted that despite a phase of outflows, US spot Bitcoin ETFs remained strong.
During this period, especially in the past month, Bitcoin’s price dropped significantly and struggled to rebound. However, data from July 2 shows positive flows for spot ETFs across daily, weekly, and monthly timeframes.
In June, Bitcoin’s price fell by $10,000, impacted by the news of Mt. Gox’s upcoming $9 billion repayments and significant selling from miners and governments. Miners offloaded over 30,000 BTC post-halving, and the US and German governments sent millions of dollars worth of BTC to crypto exchanges. Despite these challenges, Bitcoin spot ETFs maintained net flows of around $14.6 billion year-to-date. Although Bitcoin’s price dropped below $60,000, it currently hovers around $63,000.
Balchunas remarked on the situation:
“I was surprised to see that Bitcoin ETFs had net positive flows for the day, week, and month despite Bitcoin’s $10,000 price drop. Year-to-date net flows remained steady at +$14.6 billion. This resilience during a ‘step back’ phase is a positive sign.”
Are Boomers better HODLers?
Balchunas also reflected on what the performance of spot Bitcoin ETFs and BTC prices indicate. He noted that the prediction of Bitcoin’s price and flows following a “two steps forward, one step back” pattern seems accurate. Moreover, he observed that Baby Boomers are proving to be better hodlers than the crypto market initially anticipated. By not selling their holdings during the downturn, this group of ETF buyers is showing resilience and confidence in the asset. Unlike younger generations, Boomers are less likely to be affected by short-term price fluctuations, viewing their investments as more than just “orange poker chips.”
