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Bitcoin ETF Outflows and Price Drop
Spot Bitcoin (BTC) exchange-traded funds (ETFs) experienced outflows as Bitcoin’s price dropped below $67,000. Data from investment firm Farside revealed significant outflows from Grayscale’s Bitcoin ETF (GBTC), totaling over $300 million on that day. The combined net outflow for Bitcoin spot ETFs reached $85.84 million, mainly driven by the outflow from GBTC.
Net Inflows and Outflows
- BlackRock’s ETF IBIT saw a net inflow of $165 million.
- Fidelity’s ETF FBTC recorded a net inflow of $43.99 million.
- Overall, Bitcoin spot ETFs attracted a cumulative net inflow of $12.04 billion.
Bitcoin Price Correction
The negative flows in Bitcoin ETFs coincided with a 5% price drop in Bitcoin, reaching as low as $66,000. Currently, Bitcoin is trading at $66,858, down by more than 4% over the past day. This correction comes ahead of the upcoming Bitcoin halving event, expected in 19 days, potentially affecting the anticipated price target of $75,000.
Market Sentiment and Global Factors
The retreat in the crypto market signals a weakening momentum, influenced by global market caution due to inflationary pressures in the United States. Investors are adjusting their expectations for monetary policies and interest rate cuts from the Federal Reserve, impacting the cryptocurrency sphere.
Interest in Spot Ethereum ETFs
Last week, Bitwise applied to the SEC to launch a spot Ethereum ETF, joining other firms in the race to introduce the first Ethereum spot ETF. Industry giants like BlackRock, Grayscale, and VanEck have also filed proposals with the SEC for Ethereum spot ETFs, reflecting the growing interest in such investment products.
SEC Decisions and Optimism
The SEC has delayed decisions on various Ethereum spot ETF applications, including those from BlackRock, Grayscale, Fidelity, Invesco, and Galaxy Digital. Despite the delays, experts remain optimistic about the prospects of Ethereum spot ETFs, with some expecting approvals by May, citing the lack of ether designation as a security by the regulator.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
