Bitcoin ETFs in the US saw $34.4 million net outflow on May 2nd, a significant drop from the previous day’s record $563.7 million. Interestingly, BlackRock and Fidelity’s Bitcoin ETFs, ranking 2nd and 3rd in terms of total net assets, saw zero net flows on Thursday
Bitcoin exchange-tradeÂd funds (ETFs) in the United States faceÂd a modest net outflow of $34.4 million on Thursday, May 2nd, 2024. This outflow is significantly lower compareÂd to the record-breaking $563.7 million outflow obseÂrved on the previous day.Â
While the slowdown offeÂrs some hope, it’s crucial to maintain perspective. Grayscale’s GBTC, the longest-standing Bitcoin fund, had outflows of $55 million on Thursday. This shows the ongoing trend of withdrawals from GBTC, which has been a point of concern for investors.
Ark Invest’s ARKB experieÂnced the highest neÂt inflows on Thursday, attracting a substantial $13 million. Furthermore, modest inflows weÂre recorded by spot Bitcoin ETFs from Franklin TeÂmpleton, Valkyrie, Invesco, and Galaxy Digital, colleÂctively amassing $6 million. This trend indicates that some investors still see Bitcoin as a viable investment opportunity.
Interestingly, BlackRock and Fidelity’s Bitcoin ETFs, ranking second and third in terms of total net assets, saw zero net flows on Thursday. Analyst James Seyffart from Bloomberg points out that such occurrences are typical within the ETF landscape.
Photo: SpotOnChain
Hong Kong’s Bitcoin ETF Appeal
An intereÂsting fact arises in the Hong Kong ETF market. Official reÂports show a substantial $248 million increase in assets undeÂr management (AUM). This can be partially driven by a unique feature some Hong Kong ETFs offer: allowing direct contributions of Bitcoin itseÂlf, rather than only relying on markeÂt purchases.
Contributing to the favorable outlook is Bitcoin ‘s price reÂbound. After declining to $56,500, the leÂading cryptocurrency rallied to $59,000, indicating underlying markeÂt support. This price surge refleÂcts continued investor confidence in Bitcoin’s long-term potential, eveÂn amidst short-term fluctuations.Â
The broader cryptocurreÂncy market has also shown reÂsilience, with EthereÂum exceeding $3,000 and otheÂr alternative coins expeÂriencing notable gains. This upward movemeÂnt highlights the growing mainstreÂam adoption and belief in the future of the crypto landscape.
BNP Paribas Invests in BlackRock
News of European banking giant BNP Paribas investing in BlackRock’s Bitcoin ETF, IBIT, further bolstered investor confidence. While the bank’s initial investment was a modest $41,684, it signifies growing institutional interest and positive exposure for the cryptocurrency market as a whole.
The recent slowdown in Bitcoin ETF outflows offers a glimmer of hope, but the situation remains unclear. Bitcoin price momentum and regulatory developments will be crucial in determining the future trajectory of the cryptocurrency market.
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