As a seasoned crypto investor, I’ve seen my fair share of market fluctuations and debates within the Bitcoin ecosystem. Yesterday’s substantial inflows into US-based spot Bitcoin ETFs were nothing short of remarkable. The daily inflows totaling $257.3 million across multiple providers indicate a renewed confidence in Bitcoin from institutional and retail investors alike.
On yet another noteworthy day for cryptocurrency investing, US Bitcoin ETFs operated from regulated exchanges saw a massive injection of capital to the tune of $257.3 million on Thursday. This marks the third consecutive day with substantial investments into these funds, indicating a strong and reviving appetite among both institutional and retail investors for Bitcoin.
The Grayscale Bitcoin Trust (GBTC) recorded a net investment of $4.6 million, marking the second consecutive day of inflows. Notably, BlackRock, a prominent figure in the financial industry, experienced significant investments totaling $93.7 million following a three-day lull. This trend suggests a growing optimism towards Bitcoin among diverse investor groups.
As a researcher studying the inflows into Exchange-Traded Funds (ETFs) during a recent period, I discovered that Fidelity reported an impressive intake of $67.1 million. Bitwise welcomed investments totaling $1.4 million. ARK Invest experienced significant growth with added inflows of approximately $62 million. Invesco attracted $6.2 million, while Franklin saw an influx of $3.8 million. Valkyrie also gained substantial support, bringing in a total of $18.5 million.
The consistent increase in inflows from various sources in the market indicates a strong positive outlook among investors. Noted crypto analyst WhalePanda brought attention to this pattern.
Yesterday, FarsideUK added $257.3 million to ETFs, marking another day of positive flows. Following a drop in price to around $66,500 on Wednesday, the market has since rebounded and is now above $66,000. Notably, no significant news was released during this period. The lack of correlation between these inflows and the price movement suggests that another investor may be selling in the current price range.
Good morning,
Yesterday’s ETF flows by @FarsideUK was entirely positive again for $257.3 million.
As a researcher analyzing the latest data on asset management companies, I’ve discovered that Blackrock experienced inflows totaling $93.7 million during the recent period. Meanwhile, Fidelity attracted $67.1 million, and Ark Investment Management saw inflows of approximately $62 million.
Even $GBTC was positive for $4.6 million.
After the price going back to…
— WhalePanda (@WhalePanda) May 17, 2024
Old Bitcoin ETF Debate Reignites
Yesterday, the age-old debate about the transparency and possibility of market manipulation in the Bitcoin ETF market was reignited, with Tyler Durden, a well-known cryptocurrency commentator using a pseudonym, raising concerns over the off-the-record recording of Bitcoin transactions by large financial institutions such as BlackRock.
“Blackrock can take as much Bitcoin as they want from Coinbase and the transaction is recorded off chain. I’d like to see all of the ETF’s wallets. […] This means they can borrow Bitcoin from Coinbase to short and are not required to show any proof they hold 1:1. There’s also a 2-30 day settlement. All settlements are done in cash. The writings on the wall, unless someone can find the ETFs wallets on-chain.”
As a crypto investor, I understand the concerns raised about regulatory guidelines and the practices imposed by entities like CoinRoutes. However, I want to clarify that these measures were necessary due to the SEC’s requirement for “cash creation/redemption.” Since Authorized Participants cannot directly handle Bitcoin spots, they are compelled to engage in off-chain transactions instead.
According to Weisberg, ETFs are obligated, as per their charter, to keep sufficient Bitcoin on hand for every redeemed share, thereby maintaining compliance with regulatory requirements.
Additionally, James Seyffart, a Bloomberg ETF specialist, shared his viewpoint in alignment with Weisberger’s, implying the continuous education required within the ETF sector regarding cryptocurrency trades. “The team discovers the process of creating cash,” Seyffart remarked, “A nostalgic reminder of late 2023.” Essentially, he echoed Weisberger’s sentiments.
At press time, BTC traded at $66,109.
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2024-05-17 12:11