Days after suffering devastating losses that dragged its price to $56,500, bitcoin rebounded on Thursday and during the early hours of Friday. This coincided with a slowdown in outflows from spot bitcoin exchange-traded funds (ETFs) in the US compared to the previous dayās record outflows.
According to the latest data compiled by SoSoValue, spot bitcoin ETFs saw a net outflow of $34.4 million on May 2nd.
BlackRockās IBIT and Fidelityās FBTC, the second and third-largest BTC funds by total net assets, had no new flows on Thursday. A similar trend was seen across Bitwiseās BITB, VanEckās HODL, and WisdomTreeās BTCW which recorded no flow.
However, Bloombergās prominent ETF analyst James Seyffart had previously noted that having days of zero inflows is completely normal and shouldnāt be misinterpreted as a failure of the products themselves.
Meanwhile, Grayscaleās GBTC, which has been notoriously experiencing outflows, was the only ETF to see a net outflow on Thursday, totaling $55 million, as per SoSoValue.
On the other hand, Ark Investās ARKB led daily net inflows added 13 million. Other spot bitcoin ETFs from Franklin Templetonās EZBC, Valkyrieās BRRR, and Invesco and Galaxy Digitalās BTCO recorded $3 million, $2 million, and $1 million in inflows respectively, thereby totaling $6 million combined.
This comes a day after the market saw a record level of outflows for these investment vehicles, registering the largest ever at over $563 million. Fidelityās FBTC, which had only started losing its grip last week, recorded $191 million in outflows from the fund, surpassing GBTCās outflow.
May 1st also marked the first time BlackRockās IBIT recorded a net daily outflow amidst the broader market drawdown that led bitcoin to slip to the lows of $56,500.
The market appears to be recovering as bitcoin attracted a modest 3% gain over the past day that pushed its price above $59,300 after FOMCās dovish stance. As noted by QCP Capital, Chairman Jerome Powell stated that the Fed is not considering rate hikes and announced a reduction in Quantitative Tightening (QT) from $60 billion monthly to $25 billion during the FOMC meeting.
Similarly, in the QRA, the Treasury plans to maintain issuances for longer maturities unchanged, alleviating concerns about a surge in longer-term yields. This approach is expected to dampen the rally of the US dollar, which in turn, bodes well for risk assets such as bitcoin and other cryptocurrencies.
The post BTC Price Surges Above $59K as Spot Bitcoin ETF Outflows Ease Up appeared first on CryptoPotato.
According to the latest data compiled by SoSoValue, spot bitcoin ETFs saw a net outflow of $34.4 million on May 2nd.
Bitcoin ETFs Experience Slower Outflows
BlackRockās IBIT and Fidelityās FBTC, the second and third-largest BTC funds by total net assets, had no new flows on Thursday. A similar trend was seen across Bitwiseās BITB, VanEckās HODL, and WisdomTreeās BTCW which recorded no flow.
However, Bloombergās prominent ETF analyst James Seyffart had previously noted that having days of zero inflows is completely normal and shouldnāt be misinterpreted as a failure of the products themselves.
Meanwhile, Grayscaleās GBTC, which has been notoriously experiencing outflows, was the only ETF to see a net outflow on Thursday, totaling $55 million, as per SoSoValue.
On the other hand, Ark Investās ARKB led daily net inflows added 13 million. Other spot bitcoin ETFs from Franklin Templetonās EZBC, Valkyrieās BRRR, and Invesco and Galaxy Digitalās BTCO recorded $3 million, $2 million, and $1 million in inflows respectively, thereby totaling $6 million combined.
This comes a day after the market saw a record level of outflows for these investment vehicles, registering the largest ever at over $563 million. Fidelityās FBTC, which had only started losing its grip last week, recorded $191 million in outflows from the fund, surpassing GBTCās outflow.
May 1st also marked the first time BlackRockās IBIT recorded a net daily outflow amidst the broader market drawdown that led bitcoin to slip to the lows of $56,500.
Bitcoin Recovery
The market appears to be recovering as bitcoin attracted a modest 3% gain over the past day that pushed its price above $59,300 after FOMCās dovish stance. As noted by QCP Capital, Chairman Jerome Powell stated that the Fed is not considering rate hikes and announced a reduction in Quantitative Tightening (QT) from $60 billion monthly to $25 billion during the FOMC meeting.
Similarly, in the QRA, the Treasury plans to maintain issuances for longer maturities unchanged, alleviating concerns about a surge in longer-term yields. This approach is expected to dampen the rally of the US dollar, which in turn, bodes well for risk assets such as bitcoin and other cryptocurrencies.
The post BTC Price Surges Above $59K as Spot Bitcoin ETF Outflows Ease Up appeared first on CryptoPotato.
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