In the struggling cryptocurrency market, the world’s biggest cryptocurrency, Bitcoin, and its Exchange Traded Fund (ETF) in the United States are continuously experiencing negative inflow, which highlights investors’ sentiment. On April 26, 2024, an on-chain analytics firm, SpotOnChain, made a post on X (previously Twitter) stating that on April 25, 2024, the spot Bitcoin ETF market experienced a massive negative net inflow of $218 million.
Why are Crypto ETF products experiencing outflow?
However, this massive total negative inflow is for the 2nd consecutive day after April 25, 2024. Where overall, 5 out of 11 ETF providers have experienced negative inflow (Outflow). If we look at the data of outflow, Grayscale’s ETF GBTC had a net outflow of $139 million, Fidelity’s ETF FBTC had a net outflow of $22.61 million, and Valkyrie’s ETF BRRR had a net outflow of $20.16 million. With this massive outflow amongst the ETF providers, Fidelity FBTC and Valkyrie experienced this massive outflow for the first time.
Besides this massive outflow amongst the ETF providers, Franklin ETF EZBC was the only ETF provider that experienced a decent inflow of $1.8745 million. Whereas, ETF providers like BlackRock IBIT, Invesco BTCO, VanEck HODL, WisdomTree BTCW, and Hashdex DEFI experienced a $0 inflow, meaning no flow in ETF products. However, this was the first time BlackRock consecutively experienced a $0 inflow for the 2nd consecutive day.
This continuous negative inflow is happening in a period when the overall cryptocurrency market is struggling to gain momentum. The reason behind this continuous price consolidation in Bitcoin is due to the release of United States CPI data, Halving volatility, Geopolitical tension, and others. There is an expectation that until Bitcoin and the overall cryptocurrencies regain their original momentum, the crypto ETF product may experience negative inflow.
Bitcoin price-performance analysis
Currently, Bitcoin is trading near $64,250, and in the last 24 hours, it experienced 0.28% upside momentum. If we look at the performance of Bitcoin over a longer period, in the last 7 days, it experienced only 3.5% of upside momentum. Whereas in the last 30 days, due to critical market conditions, it experienced nearly 10% downside momentum.
As of writing, the overall cryptocurrency market is negative, and the 24-hour trading volume is also down by over 6%; currently, it stands near $80 billion. This fall in trading volume also highlights investors’ fear in this unpredictable market.
