As an experienced financial analyst, I’ve seen my fair share of market fluctuations and trends. The recent outflows from Bitcoin ETFs in the United States are a cause for concern, and it’s important to understand the underlying reasons behind this trend.
I’ve noticed significant withdrawals from Bitcoin ETFs based in the US on Thursday, with a grand total of $217 million being withdrawn across all ten spot Bitcoin ETFs. Among them, Grayscale Bitcoin Trust (GBTC) saw the largest outflow, amounting to $140 million.
Multiple Bitcoin ETFs See Outflows
As a researcher studying the Bitcoin Exchange-Traded Fund (ETF) market, I’ve observed some notable net outflows on Thursday, with Grayscale’s GBTC leading the pack at $31.3 million in outflows according to Farside Investors data. Following closely was Ark Invest’s ARKB ETF, which recorded $31.3 million in outflows. Additionally, there were significant outflows for Fidelity’s FBTC ($22.6 million), Valkyrie’s BRRR ($20 million), and Bitwise’s BITB ($6 million).
Alternatively, BlackRock’s IBIT Bitcoin ETF experienced no new investments for the second day in a row this week. This follows a robust initial inflow of capital into Bitcoin ETFs since their debut in January. Notably, despite active trading in Bitcoin ETFs, the total investment has recently shifted to outflows.
On Thursdays, significant withdrawals from the Bitcoin ETF occurred coincidentally as US stock markets experienced declines in response to disappointing US GDP growth figures. Consequently, Bitcoin and the entire cryptocurrency sector underwent a substantial price adjustment.
In the face of decreasing business transactions in the United States, securing financing may prove challenging in the near future. Conversely, persistent concerns over rising inflation have fueled anticipation that the Federal Reserve will maintain elevated interest rates for an extended period.
Slowdown in ETF Inflows to Continue
This past week, Standard Chartered, a British banking institution, published a report pointing to several reasons behind the recent slowdown in Exchange-Traded Fund (ETF) investments.
Geoff Kendrick, the report’s primary writer, attributed the recent trend in ETF investments to broader economic factors. These included rising Treasury yields and a more intricate risk asset landscape shaped by Middle Eastern geopolitical developments. Kendrick implied that the initial wave of ETF buying might have peaked, suggesting that future inflows will depend on the inclusion of Bitcoin spot ETFs within larger macro investment funds.
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2024-04-26 08:57