The months-long torrent of cash flowing into newBitcoin exchange-traded funds (ETFs)has finally stalled. Investors pulled nearly $218 million out of the products yesterday, according todatafrom London-based investment firm Farside Investors.
The substantial cash out comes after a key federal economic reportindicatedthat the American economy grew slower than expected in the first quarter. The metrics likely mean that the Federal Reserve won’t slash interest rates anytime soon, after raising them to a 23-year high to battle inflation.
If interest rates remain high, investors typically steer clear of “risk-on” assets like Bitcoin.
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Back in January, the Securities and Exchange Commissionapproved11 Bitcoin ETFs. The funds provide investors exposure to the cryptocurrency by buying shares that trackBitcoin’s price via brokerage accounts.
They have been wildly popular, with record amounts of money hitting the products in the weeks following their launch. BlackRock’s iShares Bitcoin Trust (IBIT) has been a particular favorite.
But yesterday, after a 71-day run of inflows, no money entered IBIT. And Grayscale’s ETF lost $139.3 million, while Fidelity’s fund (FBTC) lost $23 million—the first outflow from the product since its launch.
Theprice of Bitcoinis now $63,562, a 1.1% seven-day drop. Last month, the biggest coin touched a new high of nearly $74,000 per coin, but in April has traded well below its 2021 highs of $69,000.
Thanks to the Ordinals protocol, crypto users have inscribed more than 50 million bits of media on the Bitcoin blockchain over the last year, from artwork to profile pictures to, yes, even playable video games.
In the past three days, there has been a notable increase in both Unique Daily Trades and Unique Daily Traders, potentially signaling the onset of a new bullish trend for BONK. Currently, the BONK price is underpinned by a Relative Strength Index (RSI) of 57.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a new round of sanctions on crypto-related companies linked to Russia. The measure is part of the US government’s efforts to combat OFAC-designated entities from evading sanctions through virtual asset services.