US Spot Bitcoin ETFs Experience Record Outflows, Losing $740 Million In Three Days
March 21 2024 - 2:00PM
NEWSBTC
The 10 spot Bitcoin ETFs experienced their biggest three-day
outflow since their debut in January, as reported by Bloomberg.
This shift in investor sentiment comes after heightened interest
that propelled the largest cryptocurrency in the market to a record
high of $73,700. Bitcoin ETFs See Record Outflows Between Monday
and Wednesday, a net total of $742 million exited the Bitcoin ETFs,
reflecting outflows from the Grayscale Bitcoin Trust (GBTC) and a
moderation in subscriptions for similar offerings from prominent
firms like BlackRock (IBIT) and Fidelity Investments (FBTC).
Related Reading: Cardano (ADA) Eyes Explosive 2000% Bull Run,
Targeting $12 And Quadrupling ATH According to Bloomberg ETF expert
Eric Balchunas, the Grayscale Bitcoin Trust has experienced a
notable outflow surge. This recent development indicates a “second
wind” of investor withdrawals, with a substantial $1.4 billion
leaving the trust just this week. Notably, these withdrawals
have surpassed all other ETFs in year-to-date outflows and set a
new record for cumulative outflows in ETF history, as shown in the
chart above. Nevertheless, GBTC continues to hold a prominent
position in terms of revenue generation. It currently ranks third
out of the 3,400 ETFs available, demonstrating its continued
financial success. Despite the recent outflows, the overall
performance of these funds remains noteworthy, with net inflows of
$11.4 billion recorded since their launch, according to data
compiled by Bloomberg. This signifies one of the most successful
debuts for an ETF category. Crypto Analyst Predicts “Massive
Bounce” For BTC Bitcoin experienced a significant surge of over 5%
in the United States on Wednesday, propelled by signals from the
Federal Reserve (Fed) hinting at potential interest-rate
cuts. However, the Asian market painted a different picture
on Thursday, with Bitcoin losing momentum compared to continued
gains in global stocks and gold. According to Bloomberg, the news
of outflows from Bitcoin ETFs permeated markets, contributing to
the contrasting performance. Related Reading: Dogecoin Price Holds
Crucial Support But Can DOGE Clear This Hurdle? Nonetheless,
renowned crypto analyst Michael van de Poppe shared a bold
prediction on social media platform X (formerly Twitter). In his
post, he expressed optimism about a “massive bounce” for Bitcoin,
suggesting the potential for a continuation of its upward
trajectory. Van de Poppe also predicted that Bitcoin could
consolidate in the near term before embarking on another rally
towards the all-time high it reached before the halving event,
which is expected to begin sometime in April. Currently, BTC is
trading at $66,200, reflecting a 4% increase in the past 24 hours
despite ongoing outflows in the ETF market. Over longer time
frames, Bitcoin has shown consistent gains, with a 27% increase
over the past thirty days and an impressive 136% gain year-to-date.
Featured image from Shutterstock, chart from TradingView.com
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