Bitcoin ETFs See Lowest Inflows in Two Weeks Amid Price Volatility
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Bitcoin ETFs experienced a notable decline in investor interest, with the lowest inflows in two weeks recorded on Wednesday. Data indicates that only about 500 bitcoins, equivalent to $25.5 million, were attracted, a stark contrast to the average of 7,000 bitcoins per day in the preceding five days.
This waning demand aligns with a period of consolidation for Bitcoin, the leading cryptocurrency, which has traded in a narrow range between $50,850 and $52,550 over the past week. At the time of reporting, Bitcoin was valued at $51,590, leaving traders in a state of uncertainty.
Grayscale Suffered the Most Dent in Bitcoin ETFs Outflow
Data gathered from issuers’ websites reveals that the outflows from bitcoin ETFs were primarily driven by Grayscale’s Bitcoin Trust (GBTC), which witnessed 2,652 bitcoins exiting its fund on Wednesday. GBTC, the largest and oldest bitcoin ETF with over $30 billion in assets under management, saw a significant decrease in interest.
Conversely, some newer and smaller bitcoin ETFs, such as BlackRock’s iShares Bitcoin Fund (IBIT) and Fidelity’s Wise Origin (FBTC), experienced inflows on Wednesday, adding nearly 3,000 bitcoins combined. These funds, offering lower fees and greater liquidity than GBTC, have been progressively gaining market share since their launch in late 2020.
Bitcoin to $150,000 in 2024: Tom Lee
Despite the recent slowdown in inflows, certain experts remain optimistic about Bitcoin and its ETFs’ long-term prospects. Tom Lee, an American entrepreneur and investor, predicted on CNBC that Bitcoin would reach $150,000 by the end of the year.
.@fundstrat’s Tom Lee expects stocks to decline in the first half, but hasn't seen signs of a near-term top yet. He joins to discuss: pic.twitter.com/bBsyAN8foC
— Squawk Box (@SquawkCNBC) February 21, 2024
He cited three factors that will boost bitcoin’s price: the increasing demand for bitcoin ETFs, the decreasing supply of new bitcoins due to the halving, and the supportive monetary policy from central banks. He also dismissed the possibility of a major correction, saying that “bitcoin’s been holding up” and that he does not expect a drawdown anytime soon.
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