Compass Investments

Crypto vs. Dollar

📌 Bitcoin spot ETFs – will they be the catalyst in 2024?

Coinglass data showed that Grayscales GBTC continues to experience $43.4 million in outflows. Despite these outflows, GBTC received a small reprieve last Friday in the form of inflows of US$60 million. Bitcoin

– Coinglass data showed that Grayscale’s GBTC continues to experience $43.4 million in outflows. Despite these outflows, GBTC received a small reprieve last Friday in the form of inflows of US$60 million.

Conversely, BlackRock’s IBIT Bitcoin ETF seems to have been buoyed by optimism, receiving inflows of US$14.2 million. The growth indicates growing investor confidence in this bitcoin ETF. Fidelity’s Wise Bitcoin Fund from Fidelity also received US$2.7 million.

Bitwise’s BITB ETF also caught investors’ attention, gaining US$6.8 million and becoming Thursday’s favorite with inflows of US$11.5 million, while its peers lagged behind. Meanwhile, the Arc 21 Share ETF (ARKB) attracted $4.4 million on the same day. WisdomTree’s BTCO and Franklin Templeton’s EZBC bitcoin funds were more modest gainers with inflows of US$2.2 million and US$1.8 million, respectively.

The Hashdex, VanEck, Valkyrie and Invesco Galaxy ETFs did not record new inflows, suggesting that interest in these bitcoin ETFs among institutional investors may be low.

Since launch, these funds have received a total of $12.1 billion in inflows, most of which came from big players like BlackRock iShares and Fidelity Investments. Despite the similar performance of all the funds, with returns of around 28% , investor reaction was very different.

So who were the major losers? Gray. Since the fund’s conversion, $17.2 billion has been withdrawn from the fund. Even with the fee reductions, Greyscale’s expenses remain significantly higher than its competitors, remaining mostly stable at 0.20-0.25% .

Meanwhile, according to Coinglass, Grayscale still has nearly 293 BTC worth US$18.4 million in its fund.

The outflow of funds from cryptocurrency ETFs is not limited to the United States.

For example, the Hong Kong spot bitcoin ETF has drained more than $5.5 million in the last 24 hours, indicating a general decline in interest in these instruments.

And what about BTC?

At the time of publishing this piece, bitcoin, the king of cryptocurrencies, was still holding at $63,000, and its exchange rate was up 4% in the last 24 hours. Furthermore, according to CoinGecko, bullish sentiment towards BTC is currently at 78% .

Bitcoin’s halving of its exchange rate didn’t produce the results many of us had hoped for, and bullish sentiment among investors, and sometimes traders, has prevailed towards all 10 leading cryptocurrencies since then.

However, now that doubts have peaked, the continued exodus of small investors could ironically set the stage for bitcoin and other cryptocurrencies to make a comeback as summer approaches, suggesting that the volatile cycle in the cryptocurrency market could be restarted.

Bitcoin

Bitcoin

$66,956.06

BTC 0.16%

Ethereum

Ethereum

$3,091.71

ETH 0.43%

Binance Coin

Binance Coin

$571.83

BNB -1.12%

XRP

XRP

$0.51

XRP -0.54%

Dogecoin

Dogecoin

$0.15

DOGE 0.94%

Cardano

Cardano

$0.47

ADA -1.36%

Solana

Solana

$177.38

SOL 4.79%