During this volatile time for cryptocurrencies, the drop in Bitcoin‘s price has been connected to withdrawals from the US Spot Bitcoin ETF. Yet, there is some good news, as Eric Balchunas, a senior ETF analyst at Bloomberg, presents a new perspective. He points out that the outflows are not as significant as they may seem.
So, let’s look at the insights that have sparked optimism in the face of recent market movements.
Bloomberg Analysts Offer Insights On Bitcoin ETF Outflow
Amidst growing worries about the dropping value of Bitcoin and its link to withdrawals from the U.S. Spot Bitcoin ETF, Bloomberg analyst Eric Balchunas presents a more complex viewpoint. He argues that these recent outflows should not be viewed as cause for concern based on several important factors.
In contrast to the small-scale recent withdrawals, which account for only 1% of the Bitcoin ETF’s total net inflows since its launch, Balchunas refers to these outflows as insignificant or minute.
In simpler terms, Balchunas pointed out that the Bitcoin ETFs collectively saw a small withdrawal of only 0.4% of their total assets. However, it is important to note that most of this drain came from the Grayscale Bitcoin Trust, while other Bitcoin ETFs even experienced inflows.
Furthermore, Balchunas explains the reason behind Bitcoin’s recent price decrease, pointing towards existing owners instead of big institutional investors as the primary cause. Although the market is currently experiencing a dip, he underlines Bitcoin’s remarkable long-term growth record, which stands out significantly when compared to conventional assets such as Invesco QQQ.
Implications for Investor Sentiment
Balchunas’ assessment brings a ray of positivity to the market, contradicting the widespread belief that investor enthusiasm is waning. Contrary to the U.S. Spot Bitcoin ETF experiencing considerable outflows this week, BlackRock’s IBIT defied the norm with substantial inflows.
During this time, Eric Balchunas has pointed out that Bitcoin’s price has increased approximately 144% since BlackRock applied for a Spot Bitcoin ETF with the SEC. At the same time, he mentioned that Bitcoin has risen by 47% in the year 2024, which represents a potential tenfold increase compared to Invesco’s QQQ.
Significantly, these advancements highlight Bitcoin’s robustness and increasing adoption by institutional investors. Though there may be temporary price swings, the foundational elements continue to show strength, boosting belief in Bitcoin’s future potential.
Investors faced with market volatility find Balchunas’ insights invaluable, providing a clear-headed perspective that broadens their viewpoint during turbulent times. Meanwhile, over $260 million flowed out of the U.S. Spot Bitcoin ETF within its first three trading days this week, as reported by Farside Investors.
Although BlackRock experienced a net loss during that timeframe, their Bitcoin Investment Trust (IBIT) surprisingly gained around $120 million in investments over the same duration. This disparity in flows reflects varying attitudes among investors regarding Bitcoin ETFs and highlights the shifting landscape of cryptocurrency investing.
Read More
- BCH PREDICTION. BCH cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- USD RUB PREDICTION
- METIS PREDICTION. METIS cryptocurrency
- USD COP PREDICTION
- ZKJ PREDICTION. ZKJ cryptocurrency
2024-04-18 17:42