HomeNewsCrypto Tumble: Why U.S. Bitcoin ETFs Are Seeing a Major Cash Exodus

Crypto Tumble: Why U.S. Bitcoin ETFs Are Seeing a Major Cash Exodus

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  • For the past three weeks, U.S. Bitcoin ETFs have seen large withdrawals; Grayscale’s GBTC just lost $454 million.
  • Even with the current withdrawals and the dismal trend in Bitcoin prices, several analysts are still positive about the cryptocurrency market’s long-term prospects.

This week has been difficult for the U.S. Bitcoin ETF market, as large capital withdrawals have dominated the industry for the third week in a row. The shocking $328 million in outflows from Farside Investors in just the previous week alone suggest that there has been a cooling of interest following a period of intense investment.

A Detailed Analysis of Fund Movements 

Grayscale’s Bitcoin Trust ETF (GBTC), which saw a staggering $454 million withdrawal between April 22 and April 26, is at the vanguard of this decline. As one of the market leaders, the fund has experienced a significant reversal as a result of this.

A recent tweet from Wu Blockchain, which revealed a massive net outflow from Bitcoin spot ETFs, made the industry’s problems worse, with GBTC losing $24.6607 million in a single day.

Apart from GBTC, several other significant funds have also experienced difficulties. Four days in a row, BlackRock’s iShares Bitcoin Trust (IBIT) did not record any new investments, continuing the sector-wide trend of declining inflows, in line with what ETHNews previously disclosed.

In line with general market sentiment, Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) experienced its first net withdrawals in two days, totaling $26 million.

Only $126 million in total inflows for other funds within the sector last week were able to counterbalance the significant losses incurred by GBTC. This lack of inflows and decreased trading volumes, which dropped from almost $18 billion to $11.8 billion, show that the ETF market is waning at the same time that Bitcoin’s price is under pressure.

Current Trend in Bitcoin Price 

According to the most recent market statistics from CoinMarketCap, the price of BTC is currently $61,999.92, down 0.53% over the last day and, more worryingly, 6.43% over the last week.

This negative trend highlights the ongoing changes in investment tactics and may have further implications for Bitcoin’s future stability and price.

But a number of analysts remain bullish, even as the cryptocurrency market has just witnessed its most severe slump in history.

Christopher Jensen of Franklin Templeton pointed out that several organizations are still watching and studying the cryptocurrency market. At present, the temporary slowdown may not last long.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628