Adam Back: ETF net inflows do not represent the whole situation

Blockstream CEO Adam Back stated on social media that ETFs are slow, buy-and-hold investments. I believe that net inflows into ETFs do not represent the whole picture. The inflow of new ETFs is clearer because the trading volume is relatively low compared to the inflow. However, since GBTC is a large market, existing GBTC holders will buy from those exiting the GBTC arb-trades cycle. Another data point is that GBTC has a trading volume of $2 billion/day (a total of $4 billion in 2 days), and an outflow of -$290 million/day (2 days -$579 million). The outflow reminder simply means market makers buying when they have sold enough to push down the discount sufficiently low, thereby creating profit opportunities by buying through AP and redeeming physical BTC.