By NewsBlogger Bitcoin ETF fever appears to be waning as evidenced by Grayscale’s record outflow, leading to a decline in Bitcoin holdings, while the broader crypto market faces significant losses and volatility.
At a glance
- Grayscale’s record outflow of $643 million on March 18, equating to around 9,600 BTC
- Grayscale’s Bitcoin holdings have declined almost 40% since mid-January
- Total net inflows into Bitcoin ETFs have slowed, dropping below $200 million
- Bitcoin’s price has dropped roughly $10,000 since reaching a peak of nearly $74,000
- The bitcoin market is experiencing volatility and a shift in investor sentiment
The details
Bitcoin ETF fever appears to be waning, as evidenced by Grayscale’s record outflow of $643 million on March 18, which equates to around 9,600 BTC. Grayscale’s Bitcoin holdings have declined almost 40% since mid-January, with the company’s Bitcoin holdings dropping from around 620,000 BTC at the beginning of the year to 378,169 BTC. Investors are pulling out due to the ability to convert shares into BTC directly and higher fees.
In response to the waning interest in their current offerings, Grayscale has filed an application to launch a more competitive Bitcoin Mini Trust.
Fidelity’s FBTC fund saw just a $5.9 million inflow on March 18, while BlackRock’s IBIT inflows have been declining.
Total net inflows into Bitcoin ETFs have slowed, dropping below $200 million.
Carson Group VP Grant Engelbart stated that only a “handful of advisors” are currently allocating to Bitcoin ETFs, with ETF analyst Eric Balchunas noting that advisors are not yet soliciting the rest of their clients.
Meanwhile, Bitcoin’s price has experienced a significant drop of roughly $10,000 since reaching a peak of nearly $74,000 last Thursday.
This decline has been part of a broader market correction, with alternative coins also experiencing significant losses.
The total crypto market cap has fallen below $2.5 trillion from over $2.9 trillion last week.
Bitcoin’s market capitalization has decreased to $1.250 trillion, with dominance over altcoins increasing to just over 50%. Altcoins, including Ethereum, Solana, Binance Coin, Dogecoin, Polkadot, Polygon, and NEAR, have all shed over 10% in a day.
Lower- and mid-cap altcoins have seen similar losses, contributing to the overall decline in the crypto market.
Additionally, Bitcoin experienced a sudden and significant plunge on BitMEX, dropping to as low as $8,900 within minutes before bouncing back to $67,000. BitMEX announced via social media that it is investigating the substantial sell orders that caused the flash crash, which occurred at 22:40 UTC. Concerns have been raised among traders and observers, with speculation that large sell orders from institutional investors triggered the price decline.
Overall, the Bitcoin market is currently experiencing volatility and a shift in investor sentiment, with both positive and negative developments impacting the cryptocurrency’s price and market dynamics.
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| cryptopotato.com |
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| – Bitcoin ETF fever appears to be waning – Grayscale saw a record outflow of $643 million on March 18 – This equates to around 9,600 BTC – Grayscale’s Bitcoin holdings have declined almost 40% since mid-January – Grayscale held around 620,000 BTC at the beginning of the year, now down to 378,169 BTC – Investors are pulling out due to the ability to convert shares into BTC directly and higher fees – Grayscale filed an application to launch a more competitive Bitcoin Mini Trust – Fidelity’s FBTC fund saw just a $5.9 million inflow on March 18 – BlackRock’s IBIT inflows have been declining – Total net inflows have slowed, dropping below $200 million – Carson Group VP Grant Engelbart stated only a “handful of advisors” are allocating to Bitcoin ETFs – ETF analyst Eric Balchunas noted that advisors are not yet soliciting the rest of their clients – Bitcoin prices continued to decline, dropping 5% to $65,100 at the time of writing |
| cryptopotato.com |
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| – Bitcoin’s price has dropped by roughly $10,000 since reaching a peak of nearly $74,000 last Thursday – Alternative coins have also experienced significant losses, leading to the total crypto market cap falling below $2.5 trillion from over $2.9 trillion last week – Bitcoin had been increasing steadily for weeks, reaching an all-time high of $73,800 before analysts predicted a correction – Bitcoin’s price dropped to $68,500 last Friday, briefly recovered to $72,000, then fell back to $66,000 – Despite a brief increase to $70,000 over the weekend, Bitcoin’s price has continued to decline, reaching a low of $63,000 – Bitcoin’s market capitalization has decreased to $1.250 trillion, with dominance over altcoins increasing to just over 50% – Altcoins have suffered even more than Bitcoin, with Ethereum dropping by 9% to $3,250 after reaching over $4,000 last week – Solana and Binance Coin have also experienced significant declines, with Solana dropping by over 13% to $180 and BNB retracing to $515 – Dogecoin, Polkadot, Polygon, and NEAR have all shed over 10% in a day – Lower- and mid-cap altcoins have seen similar losses, leading to the total crypto market cap falling below $2.5 trillion from over $2.9 trillion last week |
| cryptopotato.com |
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| – Bitcoin (BTC) experienced a sudden and significant plunge on BitMEX, dropping to as low as $8,900 within minutes. |
| – BitMEX announced via social media that it is investigating the substantial sell orders that caused the flash crash. |
| – The flash crash occurred at 22:40 UTC, with prices falling to $8,900 in two minutes before bouncing back to $67,000 by 22:50 UTC. – BitMEX issued a statement acknowledging the unusual activity and ensuring users that their funds are secure. |
| – The incident impacted BitMEX’s BTC-USDT spot market but did not affect derivative markets or index prices for XBT contracts. – BitMEX confirmed that its trading platform is operating normally and all funds are safe. |
| – Concerns have been raised among traders and observers, with speculation that large sell orders from institutional investors triggered the price decline. |
| – Social media platforms were active in discussions about the crash. |
| – A user alleged that a single entity sold over 850 BTC, equivalent to $55.49 million, causing Bitcoin’s price to drop to $8,900. |
| – The BitMEX XBT index tracks Bitcoin’s price and serves as a benchmark for traders on the platform. |
| – The XBT/USDT pair represents Bitcoin’s price in USDT, the leading dollar-pegged stablecoin. |
| – A flash crash is defined as a sudden drop in an asset’s price followed by a rapid recovery, and Bitcoin has experienced similar price fluctuations in the past. |
