Spot Bitcoin ETFs saw $39m net inflows on April 2

In the past three months, there have been over $12 billion worth of investments poured into Bitcoin ETFs that have been listed for trading. At the same time, Grayscale’s GBTC has seen redemptions taking place.

Yesterday, data from SoSoValue revealed that Bitcoin (BTC) ETFs experienced approximately $39.4 million in daily net inflows. Among nine newly added funds, BlackRock, a prominent player on Wall Street, attracted the largest share with an investment of around $150 million into its iShares Bitcoin ETF (IBIT). In simpler terms, over thirty-nine million dollars moved into Bitcoin ETFs daily, with BlackRock’s iShares Bitcoin ETF receiving one hundred and fifty million dollars from investors.

With approximately $17 billion in assets under management (AUM), BlackRock is the industry leader among its competitors, not including Grayscale. Meanwhile, Fidelity, another major player in the traditional financial sector, manages around $7.6 billion in AUM.

Despite greater outflows from Grayscale, ARK 21Shares surpassed Grayscale’s GBTC with approximately $87 million in withdrawals. In contrast, Grayscale’s Bitcoin funds experienced net outflows totaling $81.8 million.

On April 2, one of the nine newly launched bitcoin spot ETFs surpassed Grayscale Bitcoin Trust (GBTC) in terms of outflows for the first time. However, Eric Balchunas, an expert in ETFs, downplayed this development on social media, arguing that it was only a matter of time and not as significant as some were making it out to be.

Some investors in Connecticut are expressing concern over recent outflows from the $ARKB ETF. However, it’s important to remember that ETFs experience inflows and outflows regularly. Vanguard, for instance, is no exception.

— Eric Balchunas (@EricBalchunas) April 3, 2024

Spot Bitcoin ETF impact on BTC halving

Within just three weeks of Bitcoin’s price rising above $66,000, the digital token experienced its fourth halving. During this process, the production of new Bitcoins was decreased, enhancing scarcity and controlling inflation.

Ryan Lee, Bitget’s Chief Analyst, explained to that this bitcoin halving is unique compared to previous cycles mainly because of the approval of spot Bitcoin Exchange-Traded Funds (ETFs) and a change in key market influencers.

Institutional investors currently hold significant influence in the Bitcoin market, with retail buyers contributing as a secondary force. In contrast, past bull markets were fueled mainly by venture capitalists and individual retail buyers. The upcoming Bitcoin halving event this month is shifting the conversation, with the approval of a spot Bitcoin ETF being a key factor in this change.

Ryan Lee, Bitget chief analyst

The surge in retail demand for Bitcoin, fueled by these new institutional investors, has been identified as a significant factor driving Bitcoin’s recent record-breaking price increases. Bitcoin reached an all-time high of approximately $73,750 according to CoinMarketCap, and Lee expressed his belief that even higher prices could be on the horizon due to the shifting dynamics of Bitcoin’s halving supply.

The rapid depletion of Bitcoin balances on exchanges is leading to a potential shortage of supply. Currently, 900 Bitcoin are added daily. However, after the upcoming halving event, this number will be cut in half to only 450 new Bitcoins per day. In our opinion, this reduction could significantly increase the demand for Bitcoin, potentially causing its price to reach a new record high within weeks and months post-halving.

Ryan Lee, Bitget chief analyst

Spot Bitcoin ETFs saw $39m net inflows on April 2

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2024-04-03 20:04