Spot the rise in Bitcoin ETFs before the halving – Yahoo Finance

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Spot the rise in Bitcoin ETFs before the halving – Yahoo Finance

Bitcoin ETF – Coins

Bitcoin ETF – Coins

A day before the long-awaited halving, Bitcoin spot ETFs rose with the price of the underlying asset, although flows into three-month-old products fell into negative territory over the past four days .

BlackRock iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Trust (FBTC)which have generated the most inflows since 10 funds began trading on January 11, have recently increased by about 3% and almost 4%, respectively. The Grayscale Bitcoin Trust (GBTC)which has the most assets under management, has also recently increased by almost 4%, although the fund has continued to hemorrhage flows.

As of Wednesday, GBTC suffered net outflows of $133 million and has accumulated more than $16.6 billion in outflows since converting from a trust, according to the research arm of crypto exchange BitMEX. As U.S. markets closed Wednesday, the original 10 spot Bitcoin funds saw net outflows for four straight days – their second-longest streak in the red – due to Grayscale losses and more tepid demand investors.

The decline ends the fund’s short history of spectacular growth, reaching more than $56 billion in assets under management, and comes amid a prolonged swoon in prices resulting from global sociopolitical uncertainties and inflation data surprisingly resilient Americans. Bitcoin recently changed hands at around $63,500, up 2.3% in the past 24 hours, but well below its record high of around $73,000 in March. It rose nearly 45%, largely due to spot approvals of Bitcoin ETFs.

Halving taken into account

Spot Bitcoin ETF watchers say investors have already factored in the halving, which reduces the amount of rewards Bitcoin miners receive for validating transactions on the Bitcoin network. They note that price increases will likely occur later this year, based on the extended gains that followed the three previous halvings in 2012, 2016 and 2020.

In an article published Thursday on the social media platform He wrote that it was “not“It’s only fitting that the ETF category is calming down after a breathtaking pace like this,” especially given the decline in Bitcoin prices.

“Even though the BTC price decline is up 144% since BlackRock’s filing last June and 47% since the start of the year, or 10 times the return of $QQQ =If you are depressed by these returns, you should probably see a doctor,” he noted.

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