Sokipiriye Dokubo
A positive shift in investor sentiment is evident as new investments pour into Bitcoin exchange-traded funds (ETFs) after a month-long period of outflows, as reported by CoinShares. Last week saw a notable $130 million influx into these funds, particularly in American ETFs, including the recently introduced spot ETFs designed to cater to traditional stock investors looking for exposure to Bitcoin.
On the other hand, European investors withdrew $14 million from Ethereum-related funds, influenced by uncertainties around the potential approval of an Ethereum ETF. Despite prominent investment firms pushing for Securities and Exchange Commission (SEC) approval for an Ethereum ETF, experts remain cautious, anticipating regulatory hurdles.
CoinShares also highlighted a decrease in U.S. regulators’ interest in spot Ethereum ETF applications, leading to speculations about potential delays or rejections, resulting in $14 million outflows from Ethereum-related funds last week.
Notably, the outflow from Grayscale’s Bitcoin Trust (GBTC) hit a low since transitioning to an ETF in January. Initially facing substantial share redemptions, the fund’s shift led to selling of Bitcoin to cover these redemptions, impacting Bitcoin’s price. However, the trend is changing, with more investors buying GBTC shares than redeeming them.
Increased inflow into GBTC could potentially drive up Bitcoin’s price as more investors seek exposure to the leading cryptocurrency, which currently trades at $62,810 per coin. Despite reaching a peak near $74,000 in March, recent enthusiasm for ETFs has dipped, with Bitcoin ETFs seeing a record low performance two weeks ago, resulting in significant investor withdrawals.