Bitcoin
BlackRock Reports First Outflows as Bitcoin ETFs Shrink 20% Since March
Top 10 US Spot Bitcoin Exchange-Traded Funds continue to unravel. On Wednesday, outflows were recorded from all ETFs for the first time, racking up the biggest losses since trading began in January, with $563.7 million leaving funds, according to data from CoinGlass. The latest numbers continue a nearly two-month decline. In the last four weeks, the funds recorded losses of around $6 billion, a drop in assets under management of around 20%.
Black stoneIBIT – the most successful fund, with US$17.24 billion in assets under management – recorded outflows for the first time, seeing US$36.9 million worth of shares liquidated. Inflows to the fund have dried up since April 24. Meanwhile, the other two largest funds, Fidelity FBTC and GBTC in grayscalehad losses of US$191.1 million and US$167.4 million, respectively.
The simple explanation for why funds have been pulling back is the decreasing value of the underlying asset. Bitcoin has risen 65% since the start of the year, reaching its all-time high of $73,000 in March, according to data from CoinGecko. Since then, it has fallen nearly 20%, now trading near $59,000. This timeline aligns with when the departures began.
The Bitcoin price correction was caused by numerous factors. After April 19 reduce by half, “buy the rumor, sell the news” investors sold short Bitcoin and miners sold excess reserves to counteract rising production costs. Furthermore, the Federal Reserve’s moderate fiscal policy created further downward pressure, keeping interest rates at their highest levels in 23 years after two months of disappointing inflation data. As of March 31, inflation was 3.48%, according to the consumer price index, up from 3.2% in February.
In addition to the somewhat challenging market conditions for risky assets like Bitcoin, Eric Balchunas, senior ETF analyst at Bloomberg, told Fortune that recent outflows are also quite typical in the early stages of an ETF.
“I wouldn’t call this an outflow bloodbath at all. This is a pretty tough correction, no doubt, but assets and flows will zigzag throughout the year,” he said. Instead, he emphasized that while skittish investors and tactical traders are quick to sell when the asset is falling, most investors, in his opinion, appear to be holding on for the long term.
Balchunas also noted that the recent drop in Bitcoin will serve as a reminder to ETF investors that the underlying asset is volatile and not an equivalent store of value like gold, which he suspects some issuers’ wholesalers may be selling to customers. “Once you get as high as they do, the fall feels like shit,” he added.
While a failure in the initial ETF frenzy may be inevitable, the first prolonged stagnation in funds raises more existential questions about how funds will continue to grow. For example, issuers currently do not have access to the clients of leading registered investment advisors and brokerage platforms such as Morgan StanleyJPMorgan or Wells Fargo. Furthermore, while the Nasdaq, Cboeand NYSE Arca filed 19b-4s with the Securities and Exchange Commission in January to allow trading of related ETF optionsthere was no progress.
In Balchunas’s opinion, just because ETFs provide easy access to Bitcoin, that can’t be the full narrative: many traditional investors still need another reason to buy the token.
“It’s almost like you put your band’s music on Spotify. Instead of selling vinyl records, you will clearly have as large an audience as possible,” he said. “But the music has to be the main thing you’re selling.”
Bitcoin
‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump
Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.
The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.
Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.
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Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.
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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.
“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.
“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”
John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”
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Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.
Forbes Digital Assets
Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.
According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”
The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.
Analysts are starting to pay more attention than usual to Bitcoin-proxy’s underlying enterprise software business MicroStrategy Inc.
How to better invest cash generated from operations is what originally prompted co-founder and CEO Michael Saylor to turn to Bitcoin four years ago. Since then, the Tysons Corner, Va.-based company has adopted a two-pronged strategy of investing in the cryptocurrency instead of traditional assets like short-term Treasuries and ramping up its software operations.
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Bitcoin has retreated from a six-week high as investors shift their focus to speculation the U.S. may sell seized tokens just days after Donald Trump vowed to create a government stockpile of the cryptocurrency if he is elected president again.
The US transferred $2 billion worth of Bitcoin to a new digital wallet address on Monday, blockchain research firm Arkham said in a publish on social media platform X. Market analysis firms have speculated that the tokens are from the Silk Road marketplace, where customers used virtual currencies to buy illegal drugs and hacking tools before it was shut down.
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