On Monday, among all Bitcoin-linked ETFs in the US, only BlackRock’s Bitcoin ETF attracted investments, marking it as unique compared to others that either took in no new funds or faced outflows.
Based on information from Farside Investors, the iShares Bitcoin Trust (IBIT) had inflows of approximately $73.4 million on April 15th. However, this was lower than the $111.1 million recorded the day before.
During the same time frame, the other eight ETFs saw no new investments, with the exception of Grayscale’s product.
On April 15, a large sum of $110.1 million flowed out of the Grayscale Bitcoin Trust (GBTC), leading to even greater outflows than the previous day’s $166.2 million. Inflows into IBIT failed to offset this significant drain.
Yesterday, SoSoValue reported that Bitcoin spot ETFs experienced total net withdrawals of approximately $36.67 million. Notably, Grayscale’s GBTC ETF saw a significant daily net withdrawal of $110 million. To date, GBTC has recorded historical net outflows amounting to around $16.38 billion.— Wu Blockchain (@WuBlockchain) April 16, 2024
During the period from April 12 to 15, a total of $91.8 million was withdrawn from Bitcoin ETFs tracking the ten leading indices.
In the past week, Bitcoin experienced significant declines, with its value dropping around 10% to reach roughly $63,498. This drop came after market volatility caused by tensions between Iran and Israel, which escalated on April 13 resulting in a retaliatory attack.
During the week ending April 12, there were outflows of $110 million from Bitcoin investment products globally, as reported by CoinShares’ research head James Butterfill. This suggests a degree of caution among investors.
Last week, the total crypto investment products experienced a withdrawal of $126 million collectively, according to Butterfill’s report. At the same time, trading volumes rose from $17 billion to $21 billion on a weekly basis.
The upcoming Bitcoin halving on April 20th, which cuts in half the rate of new coins being released, is causing price fluctuations among traders as they ponder its potential impact on Bitcoin’s market behavior.
Previously, according to crypto.news, Hong Kong gave its approval for several Bitcoin and Ethereum ETFs on Monday. The Bitcoin community celebrated this news as a significant step forward. However, Balchunas expressed skepticism, downplaying the importance of these ETFs.
“He cautioned not to anticipate large sums of money (some have even suggested an unrealistic figure of $25 billion). In our opinion, they might barely reach $500 million.”
Using simple terms, he explained that due to the small scale of the local ETF market, lacking popular issuers, limited liquidity, and high fees, it is unlikely that these products will attract significant investments.
During the coming Bitcoin halving, there is likely to be a substantial release of Bitcoin from miners over the next few months.
According to a recent study conducted by Markus Thielen, the research lead at 10x Research, approximately $5 billion worth of Bitcoin could be sold by miners post the halving event.
Thielen added that mining sell-offs could persist for approximately four to six months, potentially causing Bitcoin’s price to trend sideways rather than significantly increasing or decreasing during this period, as seen in past bitcoin halving events.
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2024-04-16 13:02