As a crypto investor with a few years of experience under my belt, I’ve seen the ebb and flow of the digital currency market. The recent developments regarding Bitcoin ETFs have been particularly interesting to watch.
Beginning mid-January, Bitcoin ETFs focusing on the 11th spot have been making their debut. Consequently, Grayscale’s GBTC has experienced significant outflows since then. Ultimately, this led to another fund relinquishing its title as the world’s largest exchange-traded fund following Bitcoin’s performance.
Over the past two trading days of this week, I’ve experienced a shift in fortunes. Regrettably, it was Fidelity’s Bitcoin Trust (FBTC) that underperformed for me.
The data from FarSide reveals that a net amount of $635.5 million was taken out of the 11 ETFs throughout the week. Specifically, on four out of the five trading days, there were outflows: $114.9 million on Monday, $200.4 million on Tuesday, $226.2 million on Thursday, and $189.9 million on Friday. However, there was a positive inflow of $100.8 million on June 12.
As a researcher studying Grayscale’s GBTC product, it’s important to highlight that GBTC experienced significant outflows totaling over $18 billion since its conversion. However, it’s worth noting that for two consecutive days – Thursday and Friday – GBTC wasn’t the one leading the outflows. Specifically, on those days, investors withdrew $61.5 million and $52.3 million from GBTC respectively.
As an analyst, I’ve noticed some significant outflows from Fidelity’s FBTC exchange-traded fund (ETF). Specifically, there were withdrawals totaling $106.4 million on Thursday and $80.1 million on Friday. This represents the first time another ETF has surpassed Grayscale’s GBTC in terms of consecutive daily outflows, marking a notable shift in investor sentiment towards these particular funds.
The substantial withdrawal of over $550 million in a week from all ETFs had a predictable effect on bitcoin’s price trend.
The asset was significantly affected by the US Consumer Price Index (CPI) data and the Federal Open Market Committee (FOMC) meeting, which occurred in the middle of the week. These events caused substantial damage to the asset, but it managed to regain a significant amount of its value and even approached $70,000 once more.
Despite hitting a monthly low of $66,000 on Friday evening, the ETF had failed to hold its ground, resulting in a significant drop from previous prices. This incident further underscores the influence the ETF exerts over the price fluctuations of the underlying asset.
As a researcher, I have observed that from late May until just before June 10, Bitcoin Exchange-Traded Funds (ETFs) experienced daily inflows, leading to an impressive price increase. Initially priced around $60,000, the bitcoin market surged and reached approximately $72,000.
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2024-06-15 17:36