Bitcoin Dips, But Don’t Panic: ETFs See Three Days Of Bullish Inflow
April 06 2024 - 8:30AM
NEWSBTC
The recent approval of Bitcoin exchange-traded funds (ETFs) by the
SEC sent jitters through the financial world. Initial concerns
about fading demand seem unfounded as Bitcoin ETFs continue to
shatter trading volume records. This is further bolstered by three
consecutive sessions of net inflows into these investment vehicles.
Related Reading: Solana Primed For Takeoff? Expert Analysis Points
To Buying Opportunity Bitcoin ETF Inflows Signal Long-Term Investor
Appetite A recent dip in ETF activity sparked fears that the
initial excitement might be short-lived. However, those fears have
been quelled by a resurgence in inflows. According to data from
SoSoValue, yesterday saw a net inflow of $203 million into Bitcoin
spot ETFs, marking the third straight day of positive inflow. This
sustained green streak suggests that investors remain interested in
gaining exposure to the top crypto through ETFs, potentially
anticipating a price surge due to the upcoming Bitcoin halving – a
pre-programmed code update that cuts production in half,
historically leading to price increases. BlackRock’s Bitcoin ETF
Leads The Pack BlackRock, the world’s largest asset manager, has
emerged as a frontrunner in the crypto ETF space. Their iShares
Bitcoin Trust (IBIT) recorded the highest net inflow on a single
day, exceeding $144 million. BTC market cap currently at $1.3
trillion. Chart: TradingView.com This impressive figure has pushed
IBIT’s total net inflow over the past two weeks to over $14
billion. BlackRock’s commitment to Bitcoin ETFs is further
underscored by their recent decision to include prominent Wall
Street institutions like Goldman Sachs, Citigroup, Citadel
Securities, and UBS as Authorized Participants (APs) in their spot
Bitcoin ETF prospectus. These additions position these banking
giants as first-time participants in the ETF market, joining
established players like JPMorgan and Jane Street. The inclusion of
such heavyweights is seen as a significant vote of confidence in
the future of Bitcoin ETFs and a potential catalyst for further
mainstream adoption. Volatility On The Horizon For ETFs While the
recent surge in demand paints a bullish picture for Bitcoin ETFs,
experts warn that volatility may be lurking on the horizon.
CryptoQuant, a cryptocurrency analysis platform, points to signals
in the futures market that suggest potential price swings in the
near future. Related Reading: Trouble Ahead? Binance Coin Futures
Market Under Pressure With Negative Funding Rates A consistently
high premium often signifies strong institutional buying pressure,
particularly in light of the recent inflows witnessed in US Bitcoin
ETFs. This increased institutional activity can contribute to price
fluctuations, creating opportunities for both gains and losses.
Despite the potential for short-term volatility, the overall
outlook for Bitcoin ETFs remains positive. The sustained demand,
coupled with the backing of major financial institutions like
BlackRock, suggests that these investment vehicles are poised to
play a significant role in bridging the gap between traditional
finance and the cryptocurrency world. Featured image from Vegavid
Technology, chart from TradingView
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