Outflows from spot ETFs could keep the company’s price stagnant
Bitcoin prices experienced a sharp decline or remained stagnant following the halving event, leading to speculation that the activity of BTC prices could cool down as outflows from spot ETFs continued.
Data from April 30 revealed that the Grayscale Bitcoin Trust (GBTC) saw net outflows of over $93 million in a single day, contributing to a total outflow of more than $162 million across four tradable funds.
Although the outflows from Grayscale’s Bitcoin ETF have slowed down recently, the total amount of GBTC exits since its conversion in January is still staggering, reaching over $17.3 billion.
Grayscale CEO Michael Sonnenshein has previously stated that he expects the outflows to decrease as the year progresses. He also addressed the high fees associated with GBTC, noting that they would decrease over time.
While six funds recorded zero net inflows, experts have pointed out that this is a common trend in the Wall Street market, which has over 2,000 ETFs trading. However, one product offered by ARK 21Shares stood out from the rest and attracted over $3 million in net inflows.
In total, the net asset value of assets under management in spot Bitcoin ETFs fell below $50 billion, according to SoSoValue. The decline in AUM is believed to be a result of both Grayscale outflows and the decrease in Bitcoin prices.
On April 30, BTC traded below $57,000 after a 6% drop in just 24 hours. Matthijs de Vries, the CEO of Nuklai, suggested that the market might experience a period of lower prices following the Bitcoin halving.
Many believed that the demand for spot BTC ETFs would drive up the prices of the leading cryptocurrency. However, on-chain indicators have indicated flat prices and market retracements, according to blockchain experts.
Despite this, there is a general consensus that U.S. spot ETFs and the halving will have a positive long-term impact. Bitwise CIO Matt Hougan previously emphasized that the reduction in BTC supply as a result of the halving should ultimately lead to higher market prices within a year.
