According to recent data, the ten spot bitcoin exchange-traded funds (ETFs), excluding Grayscale’s Bitcoin Trust (GBTC), acquired 548,556.62 BTC from the market over the last 128 days. This acquisition means the ten newly introduced spot bitcoin ETFs collectively hold 2.78% of the crypto asset’s current circulating supply. Besides Grayscale’s Pre-Existing Fund, Blackrock’s IBIT Leads New […]
Bitcoin News
Financial Nonprofit Better Markets: Approving a Spot Ether ETF Would Threaten ‘the Broader Financial System’
Better Markets, a financial nonprofit organization, has lashed out against approving a spot ether ETF product, stating that it would endanger the broader financial system. In a supplemental comment letter sent to the SEC, the organization states that approving these spot ether ETPs would “interweave the crypto industry with traditional finance,” aggravating systemic risks introduced […]
Bitcoin News
Financial Nonprofit Better Markets: Approving a Spot Ether ETF Would Threaten ‘the Broader Financial System’
Better Markets, a financial nonprofit organization, has lashed out against approving a spot ether ETF product, stating that it would endanger the broader financial system. In a supplemental comment letter sent to the SEC, the organization states that approving these spot ether ETPs would “interweave the crypto industry with traditional finance,” aggravating systemic risks introduced […]
Bitcoin News
Bitcoin Bulls “Warming Up” As Spot ETF Inflows Exceeds $1.3 Billion In 2 Weeks
Even after the upswing mid-this week, Bitcoin prices remain wavy, considering price action in lower time frames. The coin is retesting ,000 at spot rates, but traders expect the breakout to have been confirmed, pushing BTC prices toward ,000.
Since the surge to all-time highs in March, the coin has been on a steady downtrend, as shown in the formation on the daily chart.
BTC Liquidity Is High Despite Accumulation: Analyst
Therefore, as doubt creeps in, Willy Woo, a Bitcoin on-chain analyst, is calming down market participants, saying the coin is preparing for sharp gains in the days ahead.
Though prices are flat-lining in the daily chart, what’s important to note, Woo says, is the level of liquidity.
Sharing a chart on X, Woo emphasized Bitcoin’s position within its liquidity cycle. The Bitcoin liquidity cycle is simply a chart showing the boom and bust periods of the world’s most valuable coin. Every cycle in history is highly influenced by the availability and flow of capital in and out of the asset.
The analyst is upbeat, arguing that though prices are down from all-time highs and appear stuck in a consolidation, the coin is still in a “warm-up” phase. Woo adds that the current consolidation period means the long-term risk is low in light of the relatively high liquidity.
Comparing the current state of affairs to past price action, the analyst predicts that Bitcoin prices will likely surge. When “the floodgates open” and new capital enters the market, prices will shoot higher, but so will risk.
Bitcoin Uptrend Just Getting Started?
Ki Young Ju, the founder of CryptoQuant, a crypto analytics platform, has supported Woo’s position. To X, Ju said Bitcoin is in the middle of a bull cycle.
To explain this view, the founder noted that Bitcoin’s capitalization has been growing faster than the realized cap. The realized cap is a metric that aims to gauge the total value of all coins in circulation based on the price at which they were last moved.
This trend has persisted for roughly two years historically. If this pattern holds, the bull cycle could end by April 2025.
Amid this, interest in spot Bitcoin exchange-traded funds (ETFs) appears to be swelling. An ETF analyst, Eric Balchunas, said these derivative products have attracted a net inflow of over .3 billion in the last two weeks alone. This uptick effectively offset the negative flows seen in April.
Millennium Management and Morgan Stanley Report Significant Spot Bitcoin ETF Holdings
According to 13F filings with the U.S. Securities and Exchange Commission (SEC), Millennium Management, a highly successful hedge fund, holds nearly billion in spot bitcoin exchange-traded fund (ETF) shares. This week, it was further revealed that Morgan Stanley, a giant multinational investment and financial services firm, also has exposure to spot bitcoin ETFs. Top […]
Bitcoin News
Wells Fargo Holds Spot Bitcoin ETFs, Reveals SEC Filing of Grayscale Shares
Wells Fargo, a major US banking entity, is now storing a spot bitcoin ETF for its customers, as revealed in a new SEC filing, holding 2,245 shares of the Grayscale Bitcoin Trust (GBTC), which was recently converted into an ETF. Though the value of these shares stands at 1,207, a small fraction of the bank’s […]
Bitcoin News
US Spot Bitcoin ETFs Report 5 Straight Days of Outflows, Totaling $635 Million
On Tuesday, U.S. spot bitcoin exchange-traded funds (ETFs) registered their fifth consecutive day of net withdrawals, documenting a substantial 1.6 million in negative outflows. Over the last two days, Grayscale’s Bitcoin Trust (GBTC) has offloaded 1,731.56 BTC, diminishing its reserves to 296,713.90 BTC. Bitcoin ETFs Continue to See Persistent Outflows Since April 24, 2024, U.S. […]
Bitcoin News
HK vs. US: China AMC Leads but Can’t Lift Hong Kong Spot Bitcoin ETFs to US Levels
Hong Kong’s debut of six spot bitcoin and ethereum exchange-traded funds (ETFs) garnered HK.5 million ( million) on their first day, April 30. However, these ETFs underperformed compared to their U.S. counterparts, which had attracted a much larger sum of .6 billion on their initial day. Despite High Hopes, Hong Kong’s Bitcoin ETFs Start Slow […]
Bitcoin News
China Asset Management Exec Anticipates Hong Kong Spot Bitcoin ETFs to ‘Exceed’ US Debut
With the debut of spot bitcoin and ethereum exchange-traded funds (ETFs) in Hong Kong trading on Tuesday, market observers are speculating about the potential demand for these ETFs in the region, reminiscent of the enthusiasm seen in the U.S. following the approval of 11 spot bitcoin ETFs on Jan. 10. Zhu Haokang, head of digital […]
Bitcoin News
Spot Bitcoin ETFs Rocked By Outflows, BTC Price Succumbs To Bears
The Spot Bitcoin ETFs have seen their demand drop since the start of this month, and this was again evident in the considerable outflows recorded on April 26. This poor run has had far-reaching effects on the broader crypto market as Bitcoin’s price has succumbed to unfavorable market conditions.
Spot Bitcoin ETFS Record 7 Million Of Outflows
Farside Investors revealed in an X (formerly Twitter) post that the Spot Bitcoin ETFs recorded 7 million of net outflows on April 25, one of their largest this month. Grayscale’s Bitcoin Trust (GBTC) accounted for most of these outflows, with investors moving 9.4 million out of the fund.
Related Reading: Why Is The Dogecoin Price Down Today?
Some other funds also recorded individual outflows. Ark Invest’s Spot Bitcoin ETF recorded .3 million in outflows, while Valkyrie and Bitwise’s ETFs saw million and million in daily outflows, respectively. Notably, Fidelity’s Wise Origin Bitcoin Fund (FBTC) recorded a net daily outflow for the first time since these funds were approved, with .6 being moved out of the fund on Thursday.
Meanwhile, BlackRock’s dry spell continued with its iShares Bitcoin Trust (IBIT) recording zero inflows for the second consecutive day. Although the fund has yet to record net daily outflows since launching, this undoubtedly represents a setback, considering that it had, before April 24, recorded 71 consecutive days of daily inflows.
These Spot Bitcoin ETFs’ outflows have led to a wave of sell-offs from the fund issuers to fulfill redemptions. As a result, Bitcoin’s price action has been rather unimpressive as of late, with the flagship crypto experiencing significant price declines due to the heightened selling pressure. This development has put the bears firmly in control, with data from Coinglass showing that more Bitcoin longs than shorts have been liquidated in the last 24 hours.
Macro Economic Factors Also Affecting Bitcoin’s Price
An initial estimate released by the Bureau of Economic Analysis on April 25 showed that the US Gross Domestic Product (GDP) grew at an annual rate of 1.6% in the first quarter, which was way below expectations. This data report further diminishes hopes of rate cuts this year and looks to have played out in investors’ minds as Bitcoin briefly dropped below ,000 following the report’s release.
Meanwhile, the Personal Consumption Expenditures (PCE) inflation data is set to be released on April 26. This PCE report could come in higher than expectations, adding to the growing concerns about the unlikelihood of rate cuts this year.
Interest rates have significant implications on risk assets, including crypto, and if the Federal Reserve decides to take a hawkish stance, it could negatively impact the crypto market.