Bitcoin's Biggest ETF Just Took In $665 MILLION. So Who's Still Selling? | Alex Thorn

Scott Melker (0:00)

What do you want, Mr. Hagen?

Alex Thorn (0:02)

I want my life back. On October 23rd, the procedure is causing troubling physical changes. What's happening to me?

Andrew (0:12)

Look, fear.

Alex Thorn (0:13)

You have to learn to control it.

Andrew (0:15)

In the face.

Alex Thorn (0:16)

I have no idea who you are anymore. Tell me who you want me to be.

Andrew (0:24)

Cray Face. Only fears.

Alex Thorn (0:26)

October 23rd.

Scott Melker (0:27)

We did all. Bitcoin's biggest ETF just took in $665 million. Of course, that is iBit. But it was interesting because this is a day when they saw a massive inflow, while other Bitcoin ETFs actually saw outflows. Price is still down. So who's still selling? I've got Andrew today. Tillman is on a flight after dinner we had last night. And we've got very special guests from Galaxy. What are your favorites? Alex Thorn. Let's go.

Good morning, everybody. Happy Tuesday. That just told me to relax.

That was a terrible job.

Here I am, I guess, in the mountains by a fireplace. I have no idea what's going on. I'm going to go ahead and bring on Andrew and Alex right now. Good morning, gentlemen. How are you? Thank you for dressing up. Good morning. In the official.

Andrew (1:38)

Yeah. Good morning.

Alex Thorn (1:40)

I can't hear you guys. Can you hear me?

Andrew (1:41)

Relax.

Scott Melker (1:42)

We hear you. Relax.

Andrew (1:43)

Everybody needs to relax.

Scott Melker (1:45)

We hear you.

He knew I said good morning, though. I'm curious. He's a good rip leader.

Andrew (1:52)

Everybody watching this show should know. What's going on?

Alex Thorn (1:55)

I can hear you guys now. I just switched to the MacBook.

Andrew (1:58)

We got it.

Scott Melker (1:58)

Can you hear me?

Andrew (2:00)

Yeah. We hear you. You sound great. You look great.

Scott Melker (2:02)

All right.

Alex Thorn (2:02)

Well, I'm using the speakers like a boomer, though. I can't even get my AirPod to work. I heard the music, but I can see your fireplace. You look toasty there, Scott.

Andrew (2:12)

Yeah, I'm warm.

Scott Melker (2:13)

Yeah, I'm warm. I'm hearing a very strange echo there. I don't know, I don't know.

Andrew (2:18)

I think it's coming through Alex's speaker.

Alex Thorn (2:20)

It is, I'm sorry.

Scott Melker (2:21)

You know what? I really like hearing myself twice.

Andrew (2:24)

Yeah. Relax, Don't Do It. That was your favorite song in the 80s, wasn't it, Scott?

Scott Melker (2:29)

Relax, Don't Do It.

Andrew (2:31)

I'm not going to say the rest.

Alex Thorn (2:34)

I have problems with streaming sometimes, fellas.

Scott Melker (2:37)

Streaming art is temperamental, but now we're good. And I want to talk about the main story because I know everybody was highly entertained by the first four minutes of this stream.

Bitcoin ETFs just saw their biggest day in a month, thanks entirely to BlackRock. Here you go here. And also, this was the largest iBit inflow day, I believe, that we've had this entire year, as you can see right there. But kind of as I mentioned before, interestingly, it wasn't inflows for everyone. This is kind of a weird phenomenon. Alex, have we seen this before where iBit has a massive spike and then you're seeing outflows elsewhere?

Alex Thorn (3:14)

Yeah, I think this is very likely converting physical spot Bitcoin into the ETF. iBit's the number one ETF for that. And I know one of those creates. And keep in mind, I think iBit also is, they require authorized participants to indicate interest a day before they actually flow. So my understanding is this is actually Friday's demand.

Granted, price action was kind of weak on Friday, too. It was better on Wednesday and Thursday, you probably remember. That could be a factor.

Scott Melker (3:53)

That's interesting, though, that we're seeing this massive trend of the converts of spot Bitcoin into ETFs. I know everybody's kind of a race to the bottom for how much the limits are for you to be able to do that. I remember after the cold card hack, it was like, you can do it, but you have to have 20 million. Then it was like, you can do it, but you have to have a million. I don't know where we're at now or if different issuers have different limits, but that trend is real. Do you think it's a result of the kind of loss of faith and self custody right now? I mean, why are people converting spot Bitcoin into ETFs?

Alex Thorn (4:33)

I don't think that helps, but this is a trend that was going much before cold card started. And honestly, those limits, when the issuers talk about them, they're not really limits at the issuer or the issuers aren't really lowering them dramatically. It's really the authorized participants that are lowering the amounts. It's burdensome. They've been bundling those up several indicated client's interests to get up to those limits, to do the creates. I think you've got some wealthy Bitcoiners who are saying we like the traditional, we like the crypto market infrastructure, but you know what else would be great? To have my coins sitting in an account with beneficiaries that can easily pass on to my estate and by the way, where I can now borrow off of iBit at prime desks across the street. Like do we need the crypto lending facility to gain exposure to cash off of our Bitcoin holdings? And so it's the maturation of the prime and the brokerage side as well.