Crypto Investors Monitor ETF Impacts and Market Movements

21 days ago

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Crypto currency investors once spent their time trying to demonstrate that the field wasn’t solely populated by criminals. These days, they are monitoring and evaluating the impact of crypto ETFs (currently only spot Bitcoin ETFs) listed on official US exchanges on the prices in crypto exchanges. Cryptocurrencies are still very young, and it’s difficult to predict what the environment will be like when BTC turns 20 years old.

Updates on Spot Ethereum ETF Applications

The final decision on the ETF applications made by ARK and 21Shares on May 23 will be announced. However, hopes have diminished since the SEC has already taken a stance against the Ethereum Foundation and the transition to PoS. Today, we saw file updates from companies like Grayscale, Ark, and Fidelity that have applied for spot Ether ETFs. We had witnessed how the frequency of application updates excited investors by the end of 2023.

However, Bloomberg ETF Expert James is not as excited this time. He explains the reason as follows;

“I received many questions today about the 19b-4 documents submitted for Ethereum ETFs. Nothing in the files tells me that anything has changed.

The SEC’s silence here is not a good sign.”

Spot Bitcoin ETF Data as of April 2

There is still no approval for Ether, and there isn’t much optimism for May either. But we already have approved BTC ETFs that have been trading on exchanges since January. Although they have seen a total of $11.87 billion in inflows to date, the demand was not always buyer-dominated. This is quite normal, but crypto investors tend to sell on days of net outflows.

We saw this during the week of March 20, and now at the beginning of April, we are experiencing similar days. Volumes have weakened, and concerns about net outflows continue. According to the latest data, ARK’s ETF saw a net outflow of $87.5 million. This is a significant amount for ARK. GBTC outflows, however, remained at $81.9 million, which is unusually low.

The weakening of GBTC outflows may be related to the melting volumes because Tuesday’s volumes were as follows;

  • BlackRock $1.2 Billion
  • Fidelity $641 Million
  • GBTC $585 Million

Compared to Monday, there is a drop of nearly $200 million in volumes for these three. Considering all this, if we don’t see a significant entry on the IBIT side (which is difficult with this volume), we can say that a market that continues to stay red awaits us in the coming hours.

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