BitMEX co-founder Arthur Hayes has weighed in on the debate over the best traditional-market vehicle for Bitcoin exposure, arguing that spot Bitcoin exchange-traded funds are a more practical choice than shares of Strategy, formerly MicroStrategy. In an interview with crypto journalist Laura Shin, Hayes said investors seeking Bitcoin exposure via the stock market would be better off buying a spot ETF such as BlackRock’s iShares Bitcoin Trust (IBIT) rather than Strategy stock.
Hayes acknowledged that Strategy’s model made sense when markets feared Bitcoin could fall to $20,000, because the company’s Bitcoin accumulation and premium to net asset value offered a unique risk-adjusted opportunity. But with the Federal Reserve signaling rate cuts and liquidity expansion, that edge has diminished. “If investors want to use the stock market for BTC reinvestment, they can buy IBIT or other ETFs,” Hayes said, adding there is no reason to buy Strategy.
He also emphasized the modified net asset value premium, or mNAV. Strategy can issue new shares to buy more Bitcoin when its shares trade above mNAV, creating a self-reinforcing cycle, but the mechanism breaks down if the premium narrows or turns into a discount. Spot ETFs trade at or near their net asset value, avoiding that premium risk while offering greater liquidity and transparency.
Meanwhile, U.S. spot Bitcoin ETFs recorded approximately $606.3 million in net inflows on Aug. 20, according to Farside Investors, marking a fourth consecutive session of positive flows. That figure surpassed the previous day’s total, which had already been the largest daily inflow in three months.
BlackRock’s IBIT led with $503.0 million in net inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) attracted $64.7 million, Bitwise’s Bitcoin Fund (BITB) added $26.4 million, Ark Invest’s ARKB saw $12.2 million, and Invesco’s BTCO contributed $3.6 million. VanEck’s HODL was the only fund to report outflows, losing $3.6 million.
Since their launch, spot Bitcoin ETFs have accumulated tens of billions of dollars in assets under management, reshaping how traditional investors access crypto. Bitcoin has been trading above $60,000 for weeks, supported by expectations of a more favorable regulatory environment and rising corporate treasury allocations. Some observers caution that ETF flows can be volatile, but the four-session streak points to growing conviction among professional money managers.
