BTC price made a new low on April 24, as entries via the ETF channel remained weak, falling to $63,606. The price, lacking the needed support on the rise, turned downwards again, which is not surprising. So, what do the latest ETF data signal for the coming hours?
Crypto Market Commentary
In the first quarter of 2024, the crypto markets rose strongly for several motivating reasons. The halving was a primary factor, and daily ETF entries peaked in March, significantly boosting demand in spot markets. However, as we warned at the time, demand does not remain strong indefinitely.
Before the halving event, sales of GBTC by Genesis and other companies pulled down volumes in the ETF channel, triggering notable net outflow days. And still, Spot Bitcoin ETFs are far from seeing strong net entries. The halving is now behind us, and investors who bought with that expectation are also gone. Meanwhile, expectations for the Fed’s interest rate cuts have been pushed further back with each new inflation report.
Spot Bitcoin ETF April 25
Could today be a turning point? No, on April 24, GBTC saw a net outflow of $130.4 million. This means other ETFs would need to see significantly more entries compared to previous days. Considering the sales in the spot market, the risk appetite of investors in BlackRock and other ETFs might not have increased.
Above, you see the ETF entry and exit data up to April 5. Since April 15, IBIT has seen net entries under $100 million. GBTC outflows have been increasing for two days, and other ETFs are struggling to attract interest. On April 24, IBIT saw a volume of $1.4 billion, while GBTC remained at $885 million.
If GBTC sees a net outflow of $130.4 million against a volume of $885 million, it’s hard to talk about a short-term market turnaround. In the most optimistic scenario, IBIT would see at least close to $200 million in entries, and we might interpret this major GBTC sale as a shift to that side. Thus, BTC could again target $67,500.
