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Bitcoin Price Hovers Around $70K Mark With ETF Outflows, But IBIT Nears $20 Billion in Assets

Last Updated April 9, 2024 3:39 PM
Shraddha Sharma
Last Updated April 9, 2024 3:39 PM

Key Takeaways

  • Bitcoin briefly dropped below the $70K threshold before showing signs of recovery.
  • Coinshares report indicates a slowing in crypto market trade volumes.
  • BlackRock’s IBIT is nearing $20b in assets despite ETF outflows due to GBTC.

Bitcoin price briefly dipped below the $70,000 mark, signaling volatility in the market, while industry reports hinted at a cooling of trading fervor. Despite the outflows, BlackRock’s iShares Bitcoin ETF (IBIT) is on an upward trajectory, nearing an asset milestone in the ETF market.

Bitcoin Price’s Momentary Dip

On April 9, Bitcoin momentarily lost its footing at the $70K price point. The trading range on CoinGecko lay between $69K and $72K. Meanwhile, Coinshares research  indicates that while the overall sentiment in crypto investments remains positive, there are signs of moderation in the typically high enthusiasm for ETFs.

In the week prior to April 8, the report finds that inflows reached $646m, pushing the year-to-date figure to $13.8b. Bitcoin keeps on investor interest with inflows of $663m.

In contrast, short-bitcoin products have seen a third consecutive week of outflows, amounting to $9.5m.

Commentary by crypto analyst Jelle indicates that the market might be optimistic and due for an upside.

Asset Growth for IBIT

Bloomberg analyst Eric Balchunas highlighted the rise that BlackRock’s IBIT is nearing $20b in assets. According to the analyst, it places IBIT in the top 3% of ETFs, surpassing some long-established funds.

Arkham Research  finds that nine new Bitcoin ETFs collectively received close to $1b in Bitcoin inflows in 7 days. BlackRock leads the pack, securing $595m, which constitutes nearly 60% of the entire inflows. Additionally, last week witnessed a net positive flow into Bitcoin ETFs, including GBTC, amounting to 4,650 BTC, valued at around $317.6m as per the platform.

While weekly charts show recovery, Farside Investors show that ETFs saw an unexpected outflow as investors withdrew $200m with Grayscale standing at a withdrawal of $300m.

In terms of holdings, BlackRock iShares Bitcoin ETF  is the second largest BTC holder with 264,000 BTC. Grayscale leads the pack with 318,478 BTC. However, 346% of the outflows, which comes to 3,112 BTC largely came from Grayscale, as per Hodl15 Capital. The inflow-outflows charts suggest that BlackRock is soon catching up to become the largest BTC ETF holder.

BTC is Volatile, But IBIT Strong

The Bitcoin market has been volatile, with the recent dip below $70K. Weekly investment flows into various ETFs show recovery but with moderate trading interest. IBIT is seeing growth and might become the largest BTC holder in the coming days if Grayscale outflows continue.

 

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