#BTC: ETF’s are more of a narrative IMO and have less impact on trend than people think
— “Coosh” Alemzadeh (@AlemzadehC) May 2, 2024
Source: Solana has had “zero” ETF flows and yet has outperformed Bitcoin
This is not an endorsement for Sol as I own none pic.twitter.com/ucoIxoE7gS
A
A
Bitcoin ETFs crash: +$563 million outflows in one day!
Thu 02 May 2024 ▪
3
min of reading ▪ by
Getting informed
▪
Regulation Crypto
The cryptocurrency sector was rocked by an unprecedented event on May 1, 2024. Spot Bitcoin ETFs, once considered engines of growth, experienced massive outflows, totaling $563.7 million in a single day. This figure marks a historic turning point, stirring both concern and skepticism about the sustainability of the bullish trend.
The Inevitable Setback of BlackRock
Among the victims of this exodus, BlackRock’s iShares Bitcoin Trust (IBIT) stood out in particular. With an outflow of $36.9 million, this flagship fund ended an impressive run of 77 days with net positive or steady inflows. This setback is all the more remarkable because IBIT had until then been viewed as one of the vanguards of institutional adoption of crypto.
However, according to James Seyffart, ETF analyst at Bloomberg, these flows are quite normal in the lifecycle of an ETF. Moreover, he reassures investors by stating that these funds operate perfectly as a whole.
A Widespread Shockwave Through Bitcoin ETFs
The quake caused by the outflows from IBIT is just the tip of the iceberg. Indeed, other renowned Bitcoin ETFs have also suffered spectacular setbacks. The Fidelity Wise Origin Bitcoin Fund (FBTC) lost $191.1 million, while the Grayscale Bitcoin Trust (GBTC) saw $167.4 million leave its ranks.
This widespread shockwave has naturally fueled speculation about its potential impact on the price of Bitcoin. However, some analysts, like Coosh Alemzadeh, an experienced Bitcoin investor, downplay the actual influence of ETFs on market trends.
The day of May 1, 2024 will remain etched in memory as a historical turning point for Bitcoin ETFs. Although the massive outflows have shaken the market, they also offer an opportunity to re-assess the underlying dynamics of the industry. As the crypto sector matures, such setbacks are inevitable, but they also allow for the identification of the strengths and weaknesses of emerging investment products.
“`
Maximize your Cointribune experience with our 'Read to Earn' program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.
Click here to join 'Read to Earn' and turn your passion for crypto into rewards!
A
A
Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.