On Friday, April 26, outflows persisted, totaling $83.6 million, with Grayscale’s GBTC seeing a slowed outflow compared to previous days. Notably, Ark 21Shares’ ARKB was the only ETF with inflows. The ARKB Bitcoin ETF saw a modest inflow of $5.4 million. Overall, the week showcased a gigantic outflow of $328 million.
What’s Next For Spot BTC ETFs?
During a huge selloff in the crypto market, speculations regarding the future of Bitcoin ETFs have emerged. This follows a recent report indicating a fresh decline in the investment vehicle. Particularly alarming is the recent announcement from the Deposit Trust Company (DTCC) regarding the valuation of collateral for ETFs containing BTC or other cryptocurrencies, sparking unease among investors.
The landscape of U.S. Spot Bitcoin ETFs has been tumultuous of late, with significant capital outflows observed this week. This trend has sparked worries among investors regarding waning interest from major players on Wall Street in the leading cryptocurrency. Furthermore, this development appears to have contributed to the recent sell-off in the crypto market.
In addition, a recent report from 10X Research has cast doubt on the BTC ETF scene, citing the DTCC’s decision to impose a 100% haircut on ETFs with cryptocurrency exposure starting April 30. There are speculations of a potential reversal in Bitcoin ETF inflows is expected. Meanwhile, the crypto market is struggling with increased volatility and significant outflows from the U.S. Spot Bitcoin ETFs.
Significantly, the DTCC’s move to withhold collateral value from ETFs featuring cryptocurrencies as underlying assets has reverberated throughout the digital asset market. With Bitcoin showing signs of forming lower highs, 10X Research has forecasted a new downward trend for Bitcoin ETFs.