BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), saw net inflows of $73.4 million on April 15, making it the only spot Bitcoin fund in the United States to experience positive inflows for the day. However, this figure was lower than the $111.1 million in inflows the previous day. On the other hand, the Grayscale Bitcoin Trust (GBTC) reported outflows of $110.1 million on April 15, down from $166.2 million the day before. Overall, all ten spot Bitcoin ETFs in the U.S. saw net outflows on April 12 and 15, totaling $55.1 million and $36.7 million, respectively, reflecting a volatile period for Bitcoin which experienced an 11.6% decline over the week.
Global Bitcoin investment products faced outflows of $110 million in the week ending April 12, according to James Butterfill, the head of research at CoinShares. This suggests investor hesitancy in the market, with all combined crypto investment products experiencing net outflows of $126 million during the same period. Bitcoin’s recent price drop to a three-week low of $61,918 can be partially attributed to Iran’s retaliatory attack on Israel on April 13. Market participants are also closely watching Bitcoin’s halving event on April 20, where its issuance will be halved, to gauge its impact on price movement.
Bitcoin surged 2.8% over a 24-hour period on Monday, exceeding $66,500 in value, after issuers in Hong Kong received approval for spot crypto ETFs. Companies like China Asset Management and Bosera Capital shared on WeChat that they were given permission to list spot Bitcoin and Ether ETFs in Hong Kong. Analysts anticipate potential mainland Chinese investments of up to $25 billion in these ETFs through the Southbound Stock Connect program, which allows qualified investors in mainland China to access shares listed in Hong Kong. Additionally, Bitcoin miners may soon experience a notable outflow of Bitcoin following the upcoming halving event.
Markus Thielen, the head of research at 10x Research, estimated that Bitcoin miners could liquidate around $5 billion worth of BTC after the halving. This anticipated selling pressure from miners could last for four to six months, potentially leading to a sideways movement in Bitcoin’s price during that period. Similar trends have been observed in past halving cycles, with miners adjusting their operations in response to changes in block rewards. As Bitcoin continues to see fluctuations in its price and investor sentiment, events such as halving events and geopolitical tensions can play a significant role in shaping the digital asset’s market dynamics.
