All US Bitcoin ETFs experienced a net outflow of $15.7 million in total.
Grayscale, a prominent investment firm, recently decided to withdraw its proposal for an Ethereum Futures ETF. This move comes after a period of two consecutive days where Bitcoin ETFs experienced net outflows, putting an end to a previous trend.
Specifically, Grayscale’s Bitcoin ETF, known as GBTC, saw a net outflow of $28.6 billion. Furthermore, all US Bitcoin ETFs collectively experienced a net outflow of $15.7 million. These statistics were reported by Farside Investors.
The previous week had seen two days of inflows from Grayscale’s GBTC. However, this trend has now been replaced by outflows once again. As of Tuesday’s closing, Grayscale’s GBTC has seen a total outflow of approximately $17.5 billion.
This recent shift in investor behavior is widely believed to be driven by Grayscale’s high fees. Recent reports from the Securities and Exchange Commission (SEC) revealed that asset management company Susquehanna International held over $1 billion worth of Bitcoin in Grayscale’s GBTC during the first quarter of 2024. This demonstrates that institutional players still hold an interest in Grayscale’s Bitcoin investment, despite the significant withdrawals.
Despite a week of inflows and a 10% increase in the price of one share of GBTC, the trading session on Tuesday ended with the share price at $56.11, experiencing some minor pressure. In a surprising move, Grayscale also withdrew its proposal for an Ethereum Futures ETF on Tuesday.
The cryptocurrency market has been highly volatile in recent trading days, possibly due to widespread speculation that the Federal Reserve may lower interest rates in response to improved unemployment data. Neel Kashkari, President of the Minneapolis Federal Reserve Bank, stated that they are likely to maintain the current interest rates for an extended period until they are confident that inflation is approaching their target.
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