2024.04.02 14:33
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Bitcoin Spot ETFs Hit Speed Bump As Grayscale Outflows Reach $302M In A Day, But 2 Firms Enjoy Inflows

Bitcoin spot ETFs experienced a net outflow of $85.84 million on April 1, with Grayscale's GBTC fund seeing a significant outflow of $302 million. However, BlackRock's IBIT and Fidelity's FBTC saw inflows of $165 million and $43.99 million respectively. Overall, Bitcoin spot ETFs have had a cumulative net inflow of over $12 billion year-to-date. Additionally, a Coinshares report shows a recovery in investor sentiment for digital asset investment products, with inflows totaling $862 million. The U.S. saw the most inflows, while Europe and Canada experienced outflows. Bitcoin had the largest inflows, while Ethereum had outflows. The future direction of the digital asset market remains uncertain.

Bitcoin spot ETFs recorded a net outflow of $85.84 million on April 1, amid a broader slowdown in the digital asset investment space.

What Happened: Data from SoSoValue shows a mixed picture for individual Bitcoin spot ETFs.

Grayscale’s industry-leading GBTC (OTC:GBTC) fund experienced a significant single-day outflow of $302 million. Competitors like BlackRock‘s (NASDAQ:IBIT) and Fidelity‘s (BATS:FBTC) saw inflows of $165 million and $43.99 million respectively.

Despite the recent outflow, Bitcoin spot ETFs have seen a cumulative net inflow of over $12 billion year-to-date.

Shifting Market Sentiment: Meanwhile, a Coinshares report highlights a recovery in investor sentiment across digital asset investment products last week, with inflows totaling $862 million.

This follows a record outflow of $931 million the previous week.

While this suggests a return of confidence, the report also notes a slowdown in ETF activity, with daily trading volume dropping 36% compared to its peak three weeks ago.

Regional and Asset Class Divergence: The Coinshares report further emphasizes a regional divide in investment trends.

The U.S. saw additional inflows of $897 million last week. Europe and Canada experienced combined outflows of $49 million, bringing their year-to-date figure to negative $785 million.

Looking at specific asset classes, Bitcoin saw the most significant inflows last week at $865 million. This was driven by new ETF issuers in the U.S.

However, these inflows were partially offset by continued outflows from Grayscale, totaling $967 million.

Short-bitcoin investment products also experienced outflows for the second consecutive week, suggesting investor cautiousness.

Also Read: Bitcoin Could Hit $150K, Says Mark Yusko, But Not Everyone Agrees It’s ‘A Better Form Of Gold’

Ethereum (CRYPTO: ETH) outflows continued for a fourth week, totaling $19 million.

This trend is not uncommon following network upgrades, as investors potentially wait to see if the upgrades are successful.

Altcoins, on the other hand, saw modest inflows of $18.3 million last week, with Solana (CRYPTO: SOL) leading the pack at $6.1 million.

What’s Next: The recent slowdown in ETF activity and mixed performance of Bitcoin spot ETFs raise questions about the future direction of the digital asset market.

As the industry continues to evolve, staying informed about emerging trends and regulations will be crucial for investors.

The Benzinga’s upcoming Future of Digital Assets conference scheduled for Nov. 19 promises to be a valuable forum for industry leaders to discuss these critical issues and offer insights into navigating the future of digital assets.

Read Next: Crypto Nightmare: Russian Operative Uses Tether To Fund War Machine

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