rear a depressing few weeks The tide may be turning as spills increase Bitcoin Exchange Traded Fund (ETF): On Friday, all relatively young investment products turned cash flow positive for the first time in history.
Data from far-side investors show They unanimously attributed the turnaround to investors pumping in more cash. Grayscale Bitcoin Trust (GBTC) After becoming an ETF in January, it was withdrawn.
The fund had experienced spill Investors who previously could not redeem their shares are doing so every day in search of competitive funds with lower fees.
But on Friday, GBTC grown Increased by $63 million. This, combined with investors pouring cash into all the other crypto funds, meant that a total of $378 million flowed into the collective Bitcoin ETF market that day.
This marks a remarkable turnaround since the investment vehicle had its worst day on record early last week. shed blood Over $500 million. And that happened after investor interest in the product waned within weeks.
Securities and Exchange Commission in January approved After 10 years of applications, 11 Spot Bitcoin ETFs were born. The fund allows retail investors to purchase stocks that track the price of cryptocurrencies through their brokerage accounts.
They quickly did so; Very popular, billions of dollars are being pumped into the fund. The factors behind the explosive popularity of ETFs are as follows: push up prices According to CoinGecko, Bitcoin's value hit an all-time high of $73,747 in March.
However, the initial hype slowed last month. On top of that, the Fed has hinted that it is in no hurry to cut interest rates, and the turmoil in the Middle East has driven investors away from so-called “risk-on” assets like Bitcoin.
When investors withdraw their money from the fund, it puts downward pressure on stock prices. bitcoin pricecurrently trading not only below its March all-time high, but also below its 2021 record of $69,044.
Friday brought a welcome reprieve. If the optimistic shift in investor sentiment continues, could the coin price rise again?
Edited by Ryan Ozawa.
