By
Godfrey Benjamin
April 29th, 2024
GBTC, the largest Bitcoin trust globally, continues to face outflows, with $110.1 million exiting the fund on April 15, a decrease from $166.2 million on April 14.
The Bitcoin market has been experiencing a period of mixed signals in the past week. While the world’s leading cryptocurrency grappled with substantial price drop and net withdrawals from diverse investment vehicles, BlackRock’s iShares Bitcoin Trust (IBIT) stood out as a beacon of optimistic sentiment within this turbulent landscape.
Data from Farside Investors reveals that BlackRock’s IBIT, the only spot Bitcoin ETF in the United State, managed to gain a net inflow of $73.4 million on April 15. However, this inflow signifies a reduction from the $111.1 million observed on the previous day.
According to SoSoValue, yesterday's total net outflows of Bitcoin spot ETFs amounted to $36.67 million. The Grayscale ETF GBTC had a net outflow of $110 million in a single day, with GBTC's historical net outflow now standing at $16.38 billion. The Bitcoin spot ETF with the… pic.twitter.com/92c3lbmn7W
— Wu Blockchain (@WuBlockchain) April 16, 2024
Conversely, the eight remaining spot Bitcoin ETFs, apart from Grayscale’s Bitcoin Trust (GBTC), experienced zero inflows during this period. GBTC, the largest Bitcoin trust globally, continues to face outflows, with $110.1 million exiting the fund on April 15, a decrease from $166.2 million on April 14.
Bitcoin ETF Outflows Follow BTC Price Drop
These recent outflows align with a period of turbulence for Bitcoin itself. Currently, trading at the price of $63,303, with a market capitalization of $1.25 trillion, the leading cryptocurrency experienced an 11.60% drop during the past week, dampen investor interest, as indicated by the outflows observed across various Bitcoin investment products.
James Butterfill, the head of research at CoinShares, reveal that worldwide Bitcoin investment vehicles experienced a net outflow amounting to $110 million during the week ending on April 12. Furthermore, Butterfill highlights that the collective crypto investment products faced net outflows totalling $126 million last week, however a rise in weekly volumes from $17 billion to $21 billion.
Several other factors likely contributing to the current cautious sentiment, including Iran’s recent retaliatory strike against Israel on April 13, undoubtedly triggered market-wide jitters, affecting Bitcoin’s price. Furthermore, the upcoming Bitcoin halving event scheduled for April 20, is keeping traders on edge as they consider its potential impact on price movements.
Hong Kong ETF Approvals and Post-Halving Potential
The Hong Kong Securities conditionally approved spot crypto ETFs on April 15. Experts predict that the approval holds game-changing potential, with mainland Chinese investors potentially pouring approximately $25 billion into Hong Kong-listed Bitcoin ETFs through the Southbound Stock Connect initiative, allowing qualified mainland investors access to Hong Kong-listed securities.
Furthermore, Markus Thielen, the Head of Research at 10x Research, estimates that Bitcoin miners might sell Bitcoin worth $5 billion after the halving. This substantial sell-off could exert downward pressure on prices spanning 4-6 months. However, historically, halving events have been followed by periods of significant price appreciation.