All US Bitcoin exchange-traded funds (ETFs) saw a collective outflow of $15.7 million. Grayscale, a prominent cryptocurrency investment firm, recently withdrew its proposal for an Ethereum Futures ETF. This marked the end of a two-day trend of net outflows for Bitcoin ETFs. Grayscale’s Bitcoin ETF, GBTC, experienced a net outflow of $28.6 billion, while all US Bitcoin ETFs combined had a net outflow of $15.7 million, as reported by Farside Investors.
The previous week’s inflows into Grayscale’s GBTC were swiftly replaced by outflows once again. As of Tuesday’s market close, GBTC has experienced total outflows of approximately $17.5 billion. Many believe that institutional investors are withdrawing their funds from GBTC due to the high fees charged by Grayscale. However, data from the Securities and Exchange Commission (SEC) reveals that asset management firm Susquehanna International held over $1 billion worth of Bitcoin in Grayscale’s ETF (GBTC) in the first quarter of 2024. This indicates that institutional players are still interested in Grayscale’s Bitcoin investment offering despite the significant withdrawals.
After a week of renewed inflows, the price of one share of GBTC increased by 10%. However, it closed Tuesday’s trading session at $56.11, facing some minor pressure. In a surprising move, Grayscale also withdrew its proposal for an Ethereum Futures ETF on Tuesday.
The cryptocurrency market has been buzzing in recent trading days, possibly due to widespread speculation that the Federal Reserve will lower interest rates in response to improved unemployment figures. Neel Kashkari, President of the Minneapolis Federal Reserve Bank, has stated that the central bank is likely to maintain current interest rates “for an extended period” until they are confident that inflation is approaching their target.
Today’s highlighted crypto news includes Bitcoin facing rejection and its price dropping to $62,000.