A day before the long-awaited halving, spot Bitcoin ETFs have soared along with the price of the underlying asset, but flows into the three-month-old product have fallen into negative territory over the past four days.
BlackRock's iShares Bitcoin Trust (IBIT) And that Fidelity Wise Origin Bitcoin Trust (FBTC)The 10 funds have seen the most inflows since they began trading on Jan. 11, with recent gains of about 3% and nearly 4%, respectively. Grayscale Bitcoin Trust (GBTC)The fund with the most assets under management has also recently risen nearly 4%, despite continued outflows.
On Wednesday, GBTC experienced net outflows of $133 million, bringing the total to more than $16.6 billion since its conversion from the trust, according to the research arm of cryptocurrency exchange BitMEX. As of the close of U.S. trading on Wednesday, the original Bitcoin Spot 10 fund had recorded four consecutive days of net outflows, its second-longest streak in the red, but this was tied to Grayscale's losses. This is the result of a slowdown in investor demand.
The decline reverses the fund's short history of dramatic growth to more than $56 billion in assets under management, with global sociopolitical uncertainty and surprisingly resilient U.S. inflation data This happened amid a long period of price slump caused by the Bitcoin recently rose 2.3% in the past 24 hours, hovering around $63,500, well below its all-time high of about $73,000 in March. It is up nearly 45%, mainly due to the approval of the Spot Bitcoin ETF.
Consider halving
Observers of the Spot Bitcoin ETF say investors are already factoring in the halving, which will reduce the amount of compensation Bitcoin miners receive for validating transactions on the Bitcoin network. . They point out that price increases are likely to occur later this year, based on the significant increases following the previous three halvings in 2012, 2016, and 2020.
In a post on social media platform He said it was 't“After such a breathtaking pace, it is only normal for the ETF category to cool down,” especially given the fall in Bitcoin prices.
“Despite the price drop, Bitcoin is up 144% since BlackRock’s filing last June and 47% year-to-date, a 10x return for Bitcoin.” $QQQ = If you are depressed about these returns, you should probably seek medical help,” he said.
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