Nate Geraci, president of The ETF Store, notes that Bitcoin ETF performance closely mirrors Bitcoin’s price movements. With a recent shift in Bitcoin trading, this relationship is more evident than ever. In other words, any change in Bitcoin prices will directly impact the inflows or outflows of these funds (ETFs).
Nate Geraci, president of The ETF Store, noted a subtle shift in Bitcoin ETF trading. He explained that the returns of these exchange-traded funds mirror the performance of Bitcoin itself. In other words, any fluctuations in the price of Bitcoin will have an immediate impact on the inflow or outflow of investments in Bitcoin ETFs.
Bitcoin ETF Still New in Adoption
Nate Geraci says that Bitcoin ETF products are early in adoption. Once the adoption starts picking pace, the trading volume will also surge accordingly. He adds that that the flows in any ETF will not always be a straight line and Bitcoin ETF is no exception. There will be days with outflows as well.
Bitcoin ETF Lag Trading Performance
As a crypto investor, I’ve noticed that Bitcoin ETFs in the US have been underperforming recently. In fact, on the last trading day of the week, there was a net outflow of $83.6 million from these ETFs. The $82.4 million withdrawal from Grayscale GBTC, although less than the previous two days’ outflows, indicates that investors are becoming cautious about the growth of these exchange-traded funds.
The primary cause of Bitcoin’s recent underperformance can be attributed to monthly options expiration and rising PCE inflation. Additionally, the financial sector was shaken up by the DTCC’s announcement regarding collateral value adjustments for certain securities, specifically ETFs containing Bitcoin or other cryptocurrencies as assets.
Bitcoin ETF Interest Tumbles
The demand for exchange-traded funds (ETFs) linked to Bitcoin has once more been outpaced by withdrawals, despite a brief revival earlier this week when net investments into Bitcoin ETFs were detected. According to data from Farside Investors and Bloomberg published on April 27, a total of $83.6 million was taken out of spot Bitcoin ETFs. The trading volumes and customer interest in the 11 available ETFs were subdued, resulting in another disappointing day.
Among Bitcoin ETFs, Ark 21Shares (ARKB) was the only one that saw net inflows, drawing in $5.4 million. Surprisingly, it liquidated all its assets from ProShares BTC Strategy ETF (BITO). Despite expectations of purchases from ARK funds, this move resulted in a 1.84% decrease in shares during regular trading hours. However, the price bounced back slightly by gaining 0.61% after the market closed.
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2024-04-28 06:01