- March 21, 2024
- Posted by: [email protected]
- Category:
Bitcoin Spot ETF, which is recognized in the US, has witnessed a streak of net outflows spanning 72 hours and still counting. With a withdrawal volume of $261.5 million from the ten authorized funds on the 20th of March, data reports from Farside Investors show that the withdrawal volume adds up to a cumulative net outflow of $742 million over the entire 3-day period. However, the reported outflows on March 18th and 19th were $154.3 million and $326.2 million, respectively.
Grayscale Bitcoin Trust (GTBC) is reportedly the key factor in these discouraging outflows (GTBC saw a significant outflow volume of $386.6 million). Another key player was the Invesco Galaxy Bitcoin ETF (BTCO), which recorded an outflow volume of $10.2 million. There is a substantial overshadowing of inflows by this outflow, which has also been seen across the other eight approved ETFs. A case in point is the BlackRock iShares Bitcoin Trust (IBIT), which witnessed a recorded second-lowest net inflow at $49.3 million, which is just a $4 million increment from its daily low on the 6th of February. Fidelity Wise Origin Bitcoin Fund (FBTC) also experienced a modest day of inflow at just $12.9 million.
This ranks as the second-highest recorded net outflow for the 10 approved ETFs, with the highest outflow occurring on the 19th of March. Meanwhile, with all this downturn taking place, Bitcoin has witnessed a 3% gain, which has taken its trading price to $66,838, implying an increase of 7.5% over the past 24 hours. This brings an optimistic outlook for several investors and market analysts in the crypto space. With the long-awaited approval of Bitcoin Spot ETFs, there has been a renewed interest in cryptocurrencies. This is evident in a report from CoinShare data that has revealed recorded inflows into digital asset investment (DAI) products weekly; this has cumulated to $2.9 billion from last week, driving year-to-date inflows to an astonishing $13.2 billion.
However, next month’s Bitcoin halving event has the potential to strengthen the value of Bitcoin by halving the number of new tokens released into the crypto space, thereby closing the gap between supply and increasing demand.
