According to preliminary data from Farside Investors, the net outflow of the US Bitcoin spot ETF on Thursday (18th) narrowed from $165 million the previous day to $4.3 million, presenting a net outflow for five consecutive trading days with a cumulative total of approximately $319 million.
The daily fund flow of the US Bitcoin spot ETF (source: SoSo Value)
Grayscale, a cryptocurrency asset management company, had a net outflow of approximately $90 million from its Bitcoin trust fund (GBTC) yesterday. The Bitcoin spot ETF with the highest net inflow was the “Fidelity Wise Origin Bitcoin Fund” (FBTC) issued by Fidelity, with an amount of approximately $37.4 million, followed by the Bitcoin spot ETF (IBIT) under BlackRock, with an amount of approximately $18.8 million.
GBTC has been facing continuous capital outflows since the first day of its conversion to a spot ETF due to various reasons, including relatively high expense structure. Therefore, the outflow of funds from GBTC may not be a major concern, but the recent slowdown in fund inflows into other ETFs may need to be monitored.
The fund flow situation of various US Bitcoin spot ETFs (source: Farside Investors)
Recent weakness in Bitcoin prices
Bitcoin prices have shown a significant decline since last Friday, with a decline of up to 15% at one point. While news of Israel’s airstrikes against Iran broke out this morning, Bitcoin once again fell below the $60,000 mark, but then rebounded. As of the time of this article’s release, the Bitcoin trading price has risen to $64,760.
The decline in Bitcoin may be attributed to several factors, including the US tax deadline, a decrease in the possibility of a rate cut by the Federal Reserve, and the tension between Iran and Israel. Matrixport added that, according to data from The Block, the upcoming halving event is expected to occur on Saturday (April 20) morning Taiwan time, at which point the block reward will decrease from the current 6.25 BTC to 3.125 BTC. From a historical perspective, Bitcoin tends to experience a new wave of upward momentum in the months following a halving event, although the magnitude and duration of the rise may vary.
Related report: “21Shares Report: How Is the Fourth Bitcoin Halving Different?”
Many individuals in the cryptocurrency community believe that history will repeat itself; however, some institutions, including Goldman Sachs and JPMorgan, do not share this view. Analysts led by Nikolaos Panigirtzoglou at JPMorgan stated in a report on Wednesday that they do not expect Bitcoin to rise after the halving and believe that Bitcoin is still in an “overbought state.”
Data source
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