Coinspeaker
Spot Bitcoin ETFs Sees 7th Consecutive Day of Outflow Streak
Bitcoin exchange-traded funds (ETFs) in the United States faced a modest net outflow of $34.4 million on Thursday, May 2nd, 2024. This outflow is significantly lower compared to the record-breaking $563.7 million outflow observed on the previous day.
While the slowdown offers some hope, it’s crucial to maintain perspective. Grayscale’s GBTC, the longest-standing Bitcoin fund, had outflows of $55 million on Thursday. This shows the ongoing trend of withdrawals from GBTC, which has been a point of concern for investors.
Ark Invest’s ARKB experienced the highest net inflows on Thursday, attracting a substantial $13 million. Furthermore, modest inflows were recorded by spot Bitcoin ETFs from Franklin Templeton, Valkyrie, Invesco, and Galaxy Digital, collectively amassing $6 million. This trend indicates that some investors still see Bitcoin as a viable investment opportunity.
Interestingly, BlackRock and Fidelity’s Bitcoin ETFs, ranking second and third in terms of total net assets, saw zero net flows on Thursday. Analyst James Seyffart from Bloomberg points out that such occurrences are typical within the ETF landscape.
Hong Kong’s Bitcoin ETF Appeal
An interesting fact arises in the Hong Kong ETF market. Official reports show a substantial $248 million increase in assets under management (AUM). This can be partially driven by a unique feature some Hong Kong ETFs offer: allowing direct contributions of Bitcoin itself, rather than only relying on market purchases.
Contributing to the favorable outlook is Bitcoin ‘s price rebound. After declining to $56,500, the leading cryptocurrency rallied to $59,000, indicating underlying market support. This price surge reflects continued investor confidence in Bitcoin’s long-term potential, even amidst short-term fluctuations.
The broader cryptocurrency market has also shown resilience, with Ethereum exceeding $3,000 and other alternative coins experiencing notable gains. This upward movement highlights the growing mainstream adoption and belief in the future of the crypto landscape.
BNP Paribas Invests in BlackRock
News of European banking giant BNP Paribas investing in BlackRock’s Bitcoin ETF, IBIT, further bolstered investor confidence. While the bank’s initial investment was a modest $41,684, it signifies growing institutional interest and positive exposure for the cryptocurrency market as a whole.
The recent slowdown in Bitcoin ETF outflows offers a glimmer of hope, but the situation remains unclear. Bitcoin price momentum and regulatory developments will be crucial in determining the future trajectory of the cryptocurrency market.
Spot Bitcoin ETFs Sees 7th Consecutive Day of Outflow Streak
