- Bitcoin spot ETFs experienced significant net inflows of $217 million on May 6, 2024.
- Despite outflows and fee challenges, GBTC remains the largest spot bitcoin ETF with $18.08 billion in assets.
- Analysts speculate on market recovery and potential uptrends in light of Bitcoin’s price volatility post-halving.
Bitcoin spot ETFs see a surge in net inflows, while GBTC battles outflows and fee challenges. Amidst Bitcoin’s post-halving price volatility, analysts speculate on market recovery and potential uptrends.
Significant Net Inflows into Bitcoin Spot ETFs
On May 6, 2024, Bitcoin spot ETFs saw substantial net inflows totaling $217 million. Grayscale’s ETF, GBTC, recorded a notable single-day net inflow of $3.937 million, while Fidelity’s FBTC experienced a substantial net inflow of $99.1936 million. Ark Invest and 21Shares ETF ARKB also had a significant single-day net inflow of $75.6412 million.
GBTC Faces Outflows and Fee Challenges
Despite the positive development of net inflows, GBTC has faced challenges, with $17.46 billion in withdrawals since converting from a trust to an ETF earlier this year. This is largely due to its higher fees compared to competitors. Some outflows were linked to bankruptcies in the crypto industry as companies sought to repay creditors. Despite these challenges, GBTC managed to attract inflows of $63 million, managing a total of $18.08 billion in assets. However, its position as the largest spot bitcoin ETF by assets under management (AUM) is now under threat from BlackRock’s iShares Bitcoin Trust, which currently manages $16.91 billion.
Bitcoin’s Price Volatility Post-Halving
Bitcoin’s price today is $63,660.57, with a 24-hour trading volume of $30,499,448,154. It’s gone down by 0.85% in the past day, and its market cap stands at $1,253,798,152,191. There are 19,695,050 BTC coins in circulation at the moment out of a maximum supply of 21,000,000 BTC coins. After halving, Bitcoin has seen downturns within the range below reaccumulation in three weeks amid the occasion. However, with Bitcoin having already surpassed the reaccumulation range of about $60,000 during the latest cycle, some analysts like Rekt Capital argue that the danger zone might be over. At the start of bull markets in 2016, treading on the lowest 11% of Bitcoin by a 21-day wick around the halving, the price reversal started.
Conclusion
In conclusion, Bitcoin spot ETFs have seen a significant surge in net inflows despite the challenges faced by GBTC. The volatility of Bitcoin’s price post-halving has led to speculation about market recovery and potential uptrends. As the crypto market continues to evolve, these developments will be crucial in shaping the future of Bitcoin and other cryptocurrencies.
