Spot Bitcoin ETFs Witness Stagnant Fund Flows
For the second consecutive trading day, most of the newly launched spot Bitcoin ETFs have experienced zero fund flow, with only Grayscale and BlackRock showing activity on April 12 and 15, as per Farside Investors’ preliminary data.
- Nine out of eleven new spot Bitcoin ETFs had zero fund flow for two days
- Grayscale and BlackRock were the only ones with activity
- Funds continue to flow out of Grayscale’s GBTC, affecting overall net aggregate
- Crypto asset investment products have also seen outflows
BlackRock’s IBIT Fund Keeping ETF Markets Afloat
While BlackRock’s IBIT fund has been a significant contributor to keeping crypto ETF markets buoyant, the inflows are diminishing. On April 15, IBIT observed an inflow of $73.4 million, marking the fourth instance of a double-digit inflow this month.
- IBIT saw a $73.4 million inflow on April 15
- Net outflow of $36.7 million for all Bitcoin ETFs due to GBTC’s $110 million outflow
- Grayscale’s GBTC has lost 308,379 BTC worth around $19 billion
- Fidelity’s FBTC fund had no inflows after a streak of inflows
Active On-Chain Accumulation Despite Stagnating ETF Demand
Despite the stagnation in ETF demand over the past month, on-chain accumulation remains robust, according to CryptoQuant CEO Ki Young Ju. This activity persists even without considering ETF settlement transactions.
- ETF demand has remained stagnant for four weeks
- On-chain accumulation remains active, as noted by CryptoQuant CEO
- Approval of spot BTC and ETH ETFs in Hong Kong seen as a positive development
Crypto Market Correction Persists
Despite positive news from Hong Kong, the overall cryptocurrency market continues to experience a correction, with the total capitalization dropping by 3.8% in a day, reaching its lowest level since late February at $2.5 trillion.
- Total crypto market cap falls by 3.8% to $2.5 trillion
- Bitcoin drops 1.8% to $63,000, Ethereum down 2% at $3,100
- Altcoins like Solana (SOL) and Toncoin (TON) experience significant losses
Hot Take: Navigating the Crypto Market Volatility
As the crypto market witnesses stagnant ETF flows and continues its correction phase, it is essential for investors to remain vigilant. Despite challenges, the underlying resilience of cryptocurrency assets and the evolving regulatory landscape present opportunities for long-term growth and adoption.
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