The recent Bitcoin ETF trend of net outflows appears stabilizing, with analysts cautiously still optimistic about potential inflows. While redemptions persisted for five consecutive days as of March 23, 2024, the overall outflow magnitude moderated due to continued accumulation from institutional giants like BlackRock.
BlackRock, the biggest asset manager worldwide, keeps shining amid recent troubles. According to Thomas Fahrer, a well-known crypto analyst, the company bought 12,500 more BTC this week, though the total amount is unknown. Many experts see BlackRock’s continued Bitcoin investments as a good sign. The firm likely has faith in Bitcoin’s potential long-term success.
GBTC Outflows Ease, But Concerns Linger
Genesis’ liquidation process was the main reason for the negative inflows this week. Grayscale’s Bitcoin Investment Trust (GBTC) saw massive outflows of over $170 million. This likely happened due to Genesis’ sales finalizing. However, the daily outflow rate slowed down compared to earlier in the week. This suggests the impact of the liquidation might be reduced.
Fidelity Investments, a big name in the Bitcoin ETF market, took a careful path this week. Their money inflow was just $79 million, way less than normal. This could mean Fidelity is waiting to see what happens next before buying more. They may want a clearer market direction before making larger purchases again.
Whale Panda, a popular crypto analyst on Twitter, thinks that Bitcoin will stay steady for a while. This comes after Bitcoin’s price went up and down a lot due to the significant volatility triggered by the Genesis liquidation. Whale Panda believes the market is adjusting to the recent changes and finding a balance. After this, Bitcoin’s price might start going up again.
Bitcoin Halving Impact on ETFs
With the Bitcoin halving event just weeks away, the question of long-term supply dynamics comes into play. Whale Panda says around $57.6 million is needed daily to buy all new Bitcoins at $64,000 each. After halving, only half that amount may be required. This could benefit long-term Bitcoin investors.
The Bitcoin ETF market is currently experiencing a period of flux. While negative inflows have caused some concern, the slowdown in outflows and continued accumulation by major players like BlackRock offer a glimmer of hope. The coming weeks will be crucial in determining whether the market can overcome recent headwinds and resume its upward trajectory.
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