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Bitcoin ETF saw a full week of net outflows, with reports from CoinDesk: Wall Street's Bitcoin exchange-traded funds (ETFs) set a new record this week, but unlike recent weeks, cryptocurrency traders may not be as enthusiastic about this latest milestone: five consecutive days of net outflows. According to data from BitMEX Research, the total outflow of these ten ETFs over the past week amounted to $888.75 million, with Grayscale's GBTC seeing record outflows on Monday, March 18th. The five consecutive days of net outflows mark the longest streak to date, surpassing the previous four-day streak since January. Strong outflows correspond with weak inflows. BlackRock's IBIT, which holds nearly half of the market share, hit a historic low of $49.3 million on Wednesday, March 20th, but this record was broken on Friday when IBIT received only $18.9 million in new capital. Fidelity's FBTC, the third-largest spot Bitcoin ETF, also saw historic lows in inflows this week, with only $2.9 million on Thursday, March 21st. While the strong outflows align with the decline in Bitcoin prices, other factors may explain the significant outflows: Bloomberg ETF analyst Eric Balchunas pointed out that Grayscale's unusually large outflows may be a result of transactions by the digital finance company Genesis. Despite the net negative inflows, trading volumes remain significant, albeit slightly lower than in recent weeks. According to data from The Block's dashboard, the cumulative trading volume of Bitcoin spot ETFs increased by approximately $22 billion over the past week, reaching $164 billion. Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is the majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently, providing objective, impactful, and timely information about the cryptocurrency industry. Below is our current financial disclosure. ©2023 The Block. All rights reserved. This article is for informational purposes only. It is not intended to provide or be used as legal, tax, investment, financial, or other advice. Inflows hit a historic low.
BlackRock's head of digital assets, Robert Mitchnick, revealed that the financial giant's clients have "almost no" interest in Ethereum, the second-largest cryptocurrency by market capitalization.
Meanwhile, "there's almost no interest elsewhere," meaning investment firms aren't even considering smaller coins.
Mitchnick acknowledged that the cryptocurrency community wants to see the financial giant explore more options, but he said BlackRock remains primarily focused on Bitcoin.
The executive stated that Bitcoin is "definitely a top priority."
Recently, BlackRock joined the tokenization race by launching a new fund based on the Ethereum network. The fund was officially launched earlier this week, making it possible to earn dollar returns through blockchain technology.
In November, BlackRock also applied to launch an Ethereum exchange-traded fund. However, the U.S. Securities and Exchange Commission further delayed a decision on this application earlier this March.
According to USA Today, the chances of Ethereum ETFs being approved have significantly decreased due to regulatory pressure.
A week ago, Senators Jack Reed and Laphonse Butler specifically asked Securities and Exchange Commission Chairman Gary Gensler not to approve more cryptocurrency token ETFs.
Meanwhile, it is reported that the Securities and Exchange Commission has launched an aggressive campaign to classify Ether as a security, further reducing the likelihood of Ethereum-based spot ETFs being approved in the near future. |
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Post time 2-4-2024 12:25:54
