Awaiting a Crypto Catalyst
The world of Bitcoin ETFs just became more interesting. Inflows have been consistent for close to two weeks now, but finally we see a dip in the bucket. Tuesday saw these ETFs register a net outflow of $77 million, thus breaking their 12-day streak. I think that this sudden change may have caught some investors by surprise.
Looking at the numbers, Bitwise’s BITB suffered the largest blow with $70m worth of outflows. Losing $52 million and $27 million respectively, Ark’s ARKB and Grayscale’s GBTC were not far behind. The crypto market is an interesting one whereby, tides can turn so fast!
https://img.inleo.io/DQmamxqR8epvCKHfB5bK57tQPovK3rdCpE5qZtqivMGQug9/bitcoin-3183979_1280.webp
But here’s the kicker – BlackRock’s IBIT actually had an inflow of $72 million thereby pushing its assets under management above $22 billion. That said, BlackRock seems to be on top of its game.
While Bitcoin ETFs had a difficult time, Ether ETFs came with a bang.
It is clear that there is quite an appetite for Ethereum-based products given that they saw net inflows amounting to $107m and trading volume exceeding $1 bn. I cannot help but wonder if some investors are starting to shift their attention from Bitcoin towards Ethereum as they search for new opportunities in this ever-changing cryptoscape?
The price of Bitcoin has remained relatively stable despite ETF outflows, hovering above $66,000.
This resilience is impressive and indicates a maturing crypto market in my opinion. It's not as wild as it used to be when every news would lead to massive swings in prices.
I am closely watching the forthcoming US presidential election. For the market, the candidates’ position on cryptocurrency regulation may be a big deal. Rumors have it that Trump might announce Bitcoin as part of the country’s reserves during his Nashville visit. Should that happen, I expect a huge surge in Bitcoin price. Although this is a big “if,” just its possibility is enough to keep investors on their toes.
I am not surprised by the current market stagnation.
We, however, play a waiting game as investors cannot identify what to do next. Anyhow, there is another aspect of uncertainty: possible selling pressure from the US government and Mt. Gox. I believe that until we reach closer to the elections, prices are likely to remain subdued and gain momentum.
In my opinion, this recent outflow should not necessarily cause panic.
Posted Using InLeo Alpha