Bitcoin Advocate Samson Mow Believes Outflows Will Reverse
In response to concerns about potential decreases in Bitcoin’s price due to negative market sentiment, Samson Mow, a prominent Bitcoin advocate, has expressed his belief that the latest outflows will eventually reverse. He urges the crypto community to plan accordingly and not be swayed by market sentiment.
Bitcoin’s Intrinsic Qualities Will Prevail
Mow dismisses market sentiment as a significant concern and emphasizes the fundamental drivers of Bitcoin. He highlights its ultimate scarcity and unlimited demand as key factors that will enable it to prevail despite temporary outflows.
Spot ETFs Experience Significant Outflows
Amidst these developments, spot-based Bitcoin exchange-traded funds (ETFs) have witnessed substantial outflows, sparking concerns within the cryptocurrency community. Over the course of just three days this week, spot ETFs have experienced outflows totaling over $700 million. BlackRock’s IBIT, the largest Bitcoin ETF, has also seen a decline in daily inflows.
All Bitcoin ETF outflows will eventually become inflows. Plan accordingly.
— Samson Mow (@Excellion) March 21, 2024
Decline in Inflows Raises Concerns
The leader in the market has experienced a decline in daily inflows, with the lowest amount recorded in recent weeks being $49 million. This decline adds to the growing concerns surrounding the state of Bitcoin ETFs.
Factors Contributing to Outflows
A key factor driving investors to exit Grayscale Bitcoin Trust (GBTC) is the company’s higher fees compared to its competitors in the ETF market. Other providers offering lower fees have enticed investors away from Grayscale, resulting in significant outflows. Additionally, experts attribute these outflows to a massive withdrawal of BTC from GBTC following the US Securities and Exchange Commission’s (SEC) approval of the conversion of GBTC into a spot ETF.
In January, the SEC approved the launch of 10 spot Bitcoin ETFs, which further contributed to the outflows. Mow also shared his views on the potential approval of ETFs based on the Ethereum spot trading price. He believes that Ethereum (ETH) should be classified as a security and expects the SEC to eventually deem it as such. He criticizes the SEC’s approval of ETH futures ETFs, considering it a significant mistake.
Uncertainty and Future Outlook
Mow’s warning about the potential reversal of outflows introduces an element of uncertainty to the situation. As the cryptocurrency community grapples with these developments, industry experts will closely monitor the market to assess if Mow’s prediction comes true or if further challenges lie ahead.
While the future of Bitcoin ETFs remains uncertain, it is essential to remember that the cryptocurrency market has proven its resilience time and again. Investors and enthusiasts will continue to monitor developments in hopes of stability and renewed confidence in the digital asset space.
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