Bitcoin spot ETFs – Not the catalyst most thought it would be in 2024?

  • Grayscale’s Bitcoin ETF saw a negative outflow of over $43 million, triggering outflows for other products
  • However, the Bitcoin market was not particularly affected by this.

It’s been a slow month for U.S. spot Bitcoin ETFs, once seen as the main catalyst for a 2024 bull run that could see Bitcoin climb as high as $100,000. In fact, just yesterday, products saw outflows of around $11.3 million, triggered by Grayscale.

Change in investor sentiment?

Data from Change machine revealed a worrying trend for Grayscale’s GBTC, which continued to bleed with $43.4 million fleeing the fund. Despite this exodus, GBTC experienced a brief moment of respite last Friday, with a surprising inflow of $60 million, hinting at its still powerful presence in the market.

Conversely, optimism seemed to shine for BlackRock’s IBIT Bitcoin ETF, which welcomed an impressive $14.2 million. This rebound paints a picture of growing investor confidence in this particular Bitcoin ETF. Fidelity’s Wise Bitcoin ETF was also no slouch, enjoying a $2.7 million increase.

Bitwise’s BITB ETF also caught investors’ attention, raising $6.8 million and emerging as Thursday’s favorite with $11.5 million in inflows, while its peers lagged. Meanwhile, the Ark 21shares ETF (ARKB) received a $4.4 million wave of support on the same day. WisdomTree’s BTCO and Franklin Templeton’s EZBC Bitcoin ETFs saw more modest gains, with inflows of $2.2 million and $1.8 million, respectively.

Source: Coinglass

It was a quieter day for Hashdex, VanEck, Valkyrie and Invesco Galaxy ETFs, which saw no new flows, highlighting a possible disinterest in these Bitcoin ETF products among institutional investors.

Since their inception, these funds have collectively seen an inflow of $12.1 billion, with giants like BlackRock’s iShares and Fidelity Investments taking the lion’s share. Despite broadly similar performances, with returns hovering around 28%, investor reactions were very varied.

The big loser? Shades of grey. The fund has seen a staggering withdrawal of $17.2 billion since its conversion. Even after reducing its fees, Grayscale’s fees remain significantly higher than those of its competitors, which typically hover around an expense ratio of 0.20% to 0.25%.

Meanwhile, Coinglass revealed that Grayscale still holds nearly 293 BTC, worth $18.4 million.

Source: Coinglass

Crypto ETF product releases are not limited to the United States alone.

In fact, the data watch that Hong Kong spot Bitcoin ETFs saw outflows of more than $5.5 million in the past 24 hours, indicating a general loss of interest in the products.

Source: Coinglass

And BTC?

Amidst this, Bitcoin has managed to hold its own. At press time, the king of cryptos still managed to hover above $63,000, up 4% in the last 24 hours. Additionally, the community is currently 78% bullish on BTC, according to data from CoinGecko.

The Bitcoin halving did not yield the results many of us were hoping for and since then the top ten cryptocurrencies have been mostly bullish. feelings by investors and sometimes even by traders.

However, with doubts peaking, the current exit from small investors could ironically pave the way for Bitcoin and its fellow cryptos to stage a comeback as summer approaches, hinting at a potential reset of the volatile market cycles of cryptography.

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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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