Tue, April 16, 2024 at 19:16

• 

  Kang-hoon

  • Hello Annie, today's news is about the Bitcoin exchange-traded funds (ETFs) in the United States.

  • According to Ki Young Ju, the founder of CryptoQuant, demand for these ETFs seems to have stagnated over the past four weeks.

  • 
• Annie

  • Oh really?😮 But what exactly are these Bitcoin ETFs?

  
• 

  Kang-hoon

  • Good question, Annie.

  • Spot Bitcoin ETFs are crypto derivative products that allow investors, primarily regulated institutions and whales, to get exposure to Bitcoin while avoiding the hassle of custody.

  • Leading issuers like Bitwise and Proshares use a regulated custodian to secure all BTC backing all minted shares in circulation.

• Annie

  • Ah, I see.

  • So they're like a more convenient way to invest in Bitcoin.

  • But why has the demand been slowing down?

  
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• 

  Kang-hoon

  • Well, it seems that market conditions are a bit uncertain at the moment.

  • 

  • All but one United States-based spot Bitcoin fund, iShares Bitcoin Trust (IBIT) by BlackRock, saw zero inflows over the past two days.

• Annie

  • Zero inflows?

  • That doesn't sound good.😕

  
• 

  Kang-hoon

  • Yes, it's a bit concerning.

  • 

  • On April 15th, IBIT registered $73.4 million which was a near 30% drop from the $111 million recorded just a day earlier on April 14th.

• Annie

  • Wow, that's a big drop in just one day!😱

  
• 

  Kang-hoon

  • Indeed.

  • Moreover, all other eight ETFs, excluding GBTC which is being unwound and converted into a spot ETF, saw nil inflows over the same period.

  • On April 15th, GBTC recorded $115 million in outflows while all the nine spot Bitcoin ETFs also decreased roughly $25 million.

• Annie

  • So, what does this mean for the market?

  • Is this bad news?

  
• 

  Kang-hoon

  • It's hard to say definitively, but the contraction of inflows into spot Bitcoin ETFs can be attributed to dicey market conditions.

  • At press time, sellers have been pressing lower.

  • From the BTCUSDT daily chart, the coin is down 14% from all-time highs.

• Annie

  • Oh no, that's not good at all.😟

  
• 

  Kang-hoon

  • Yes, it's a bit of a tough time for Bitcoin.

  • Even though prices are within a broad range, with support at $61,000 and resistance at $73,800, sellers have the upper end in the short term.

  • It's likely that spot Bitcoin ETFs might record outflows if prices plunge below $60,000.

• Annie

  • So should I be worried about my investments?

  
• 

  Kang-hoon

  • It's always important to keep an eye on market trends and make informed decisions.

  • However, it's also worth noting that Hong Kong regulators approved multiple spot Bitcoin and Ethereum ETFs on April 15th, and their impact is yet to be seen on the market.

• Annie

  • I see.

  • So there's still hope then?

  
• 

  Kang-hoon

  • Absolutely.

  • The market is always fluctuating, and while there may be short-term challenges, there's always potential for growth in the long term.

  • 

  • It's important to stay informed and make decisions based on a comprehensive understanding of the market.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.