Unexpected Investor Loyalty in Crypto ETFs
Joseph Chalom, co-CEO of Sharplink Gaming and a former BlackRock executive, expressed surprise regarding the holding patterns of investors in Bitcoin and Ethereum exchange-traded funds (ETFs).
Having served as BlackRock’s former digital assets strategy chief, Chalom noted that the sustained holding behavior of these ETF investors was particularly unexpected, even for a financial giant with extensive market experience.
A New Investment Dynamic
BlackRock, a firm with a nearly four-decade history and over $10 trillion in assets under management, has navigated numerous market cycles. However, the consistent holding demonstrated by investors in their Bitcoin and Ether ETFs presented a novel observation for Chalom.
He indicated that the surprise wasn’t related to the substantial capital inflows or the extensive media coverage these ETFs generated. Instead, it was the investors’ unwavering commitment to holding their positions that stood out.
Observing ‘Diamond Hands’
Chalom’s comments highlight a phenomenon sometimes referred to as ‘diamond hands’ in the crypto community, where investors show a strong reluctance to sell their assets despite market fluctuations. This long-term holding strategy appears to be a defining characteristic among participants in these nascent cryptocurrency investment vehicles.
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