While the Bitcoin halving clock ticks closer, with block reward reduction estimated to occur on April 21st, the crypto market is experiencing a lull.
Price-wise, BTC still holds a position of nearly $70,000, with a market capitalization of $1.39 trillion. Meanwhile, the total crypto market cap is at $2.7 trillion, with a total trading volume of $90 bln, according to CoinGecko.
Currently trading above $70K, Bitcoin’s price is right under its all-time high (ATH) of $73,808, which hit March 14th. So, a continuation of bullish momentum can push the price toward this ATH, while a drop below the $69K support level might lead to a decline toward the next support at $64K.
Since last month, the BTC price has been taking a breather after rallying as much as 67.3% in 2024 and 163% since mid-October. 2023, when the spot Bitcoin exchange-traded fund (ETF) narrative kicked off this bull run.
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What’s Up With Bitcoin Spot ETFs? Performance Update
The Securities and Exchange Commission (SEC) approved the first Bitcoin Spot ETF in the US in early January. With that, nearly a dozen Bitcoin ETFs made their debut, fast becoming a historical launch. These products recorded billions of dollars in inflows, with asset management giants BlackRock and Fidelity leading this race.
April, however, is turning out to be not so good for Bitcoin Spot ETFs. A notable slowdown has been noted in the flow of capital with many of these funds, such as ARK 21Shares Bitcoin ETF (ARKB), Franklin Bitcoin ETF (EZBC), Invesco Galaxy Bitcoin ETF (BTCO), Valkyrie Bitcoin Fund (BRRR), VanEck Bitcoin Trust (HODL), and WisdomTree Bitcoin Fund (BTCW) recording zero flows most of this month, as per the data provided by Farside.
However, this is not the complete picture, as these products were never the most active or popular. The leader, BlackRock’s IShares Bitcoin Trust Registered (IBIT), continues to attract capital, although the inflows have reduced significantly. This week, IBIT recorded $21.2 mln, $128.7 mln, $33.3 mln, and $192.1 mln in net inflows.
As of April 11th, BlackRock’s Bitcoin Spot ETF had $18.73 billion in total assets under management (AUM). Talking about IBIT’s success, Eric Balchunas, Bloomberg Intelligence Senior ETF Analyst, noted that in a matter of three months, the fund has been up more than fifty percent and raked in multi-billion dollars, which is “double any other BlackRock ETF, and they have 421 of them.”
No one comes close to BlackRock. However, Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) comes in second, recording inflows throughout this month, with its AUM at $10.38 bln. Bitwise Bitcoin ETF Trust (BITB), too, has been seeing a constant flow of funds, though its AUM is only $2.27 bln.
Amidst all this, Grayscale continues to record outflows from its Bitcoin ETF (GBTC). This week, on Wednesday, the fund saw its lowest outflow at $17.5 mln since converting its trust into an ETF. However, on Thursday, the net outflow once again increased to nearly $125 mln.
Just earlier this week, Grayscale CEO Michael Sonnenshein said that outflows from GBTC are reaching an “equilibrium.” This was attributed to selling activity related to settlements of bankrupt crypto companies like FTX being “largely behind us.” Meanwhile, analysts at Coinbase Institutional have noted that increased GBTC selling has potentially been due to Genesis selling shares as part of its bankruptcy process.
Additionally, this ETF charges the highest annual fees at 1.5%, which Sonnenshein anticipates will come down over time “as markets mature.”
As per Grayscale’s official website, GBTC now has $22.26 bln in AUM after losing more than 300,000 BTC, which accounts for nearly half of its holdings this year. This shows that BlackRock is fast catching up to the crypto-native fund that was launched over a decade ago in 2013.
With that, BlackRock is all set to take over the crown from Grayscale, and the gap between the two is closing fast to become the biggest Bitcoin Spot ETF in the market.
As for BTC, with inflows in other ETFs slowing down while GBTC continues to bleed, the price is feeling the heat, with little action over the past few weeks.
China Getting in on ETF Action? Approvals Coming Monday
While activity surrounding Bitcoin ETFs is going down in the US, Asia is gearing up to get involved. With Hong Kong aiming to become a digital asset hub, the authorities are said to be ready to approve exchange-traded funds. On Friday, Bloomberg reported that the city could approve spot BTC and Ether ETFs as early as Monday.
Ever since Bitcoin ETFs were approved in the US, Hong Kong-based firms have been seeing growing traction. HashKey Exchange has gained over 170,000 customers since its launch last…
Read More: ETF Update: More Approvals Incoming, Litecoin Gaining Spotlight, Ethereum in