Thomas Daniels
Investor sentiment in digital asset investment products remained tepid last week, as evidenced by the continued outflows from spot Bitcoin ETFs on April 29. According to data from SoSoValue, 11 U.S. spot Bitcoin ETFs collectively registered $51.53 million in outflows on that single day.
In a notable shift within the sector, Grayscale’s GBTC, which typically leads this market, saw significant withdrawals. Investors pulled $24.66 million from GBTC, while ARK 21Shares’ BTC ETF experienced even larger outflows, totaling $31.34 million. Additionally, Fidelity’s spot Bitcoin ETF reported outflows of $6.85 million.
Among the ETF issuers, five, including BlackRock’s IBIT fund, did not record any new inflows. Despite this, BlackRock has recently overtaken Grayscale as the foremost spot BTC ETF provider, trailing GBTC’s market presence by a mere $2 billion — a remarkable achievement considering IBIT’s market entry over a decade after Grayscale.
This pattern of stagnation in BlackRock’s fund marks a significant departure from the previous 71 days, during which the fund enjoyed daily inflows, thereby surpassing its competitors. ETF expert Eric Balchunas commented that such trends are not uncommon in the financial markets.
Bitcoin’s value appears resilient despite the outflows from spot ETFs and a post-halving price dip. According to CoinMarketCap, Bitcoin was trading below $61,000 at the latest check and had declined more than 12% over the previous month, affected by a broader market correction leading up to the halving event.
The overall cryptocurrency market has mirrored Bitcoin’s trajectory, with altcoin valuations also facing headwinds. The total crypto market capitalization has dipped below $2.3 trillion.
Despite the market’s sideways movement post-halving, industry experts remain optimistic. In an interview with crypto.news, Sunil Srivatsa, CEO of Storm Labs, suggested that the market is entering another bull phase. “The general consensus is that we’ve entered another bull market, and seasoned investors are bracing for healthy corrections,” said Srivatsa. He also hinted at exciting developments ahead, including potential rate cuts and the anticipated approval of an ETH ETF.
