From March 18 to March 21, cryptocurrency ETFs recorded a net outflow of $836 million. Against the backdrop of these events, the price of Bitcoin decreased by $12,000.
Coinbase experts did not name specific reasons for the negative trend, but drew attention to the significant amount of funds withdrawn from the Grayscale Investments fund.
In four days, the outflow from the spot Bitcoin ETF GBTC exceeded $1.83 billion. Coinbase admitted that this process is related to the bankruptcy of Genesis Global and litigation regarding the Gemini Earn program.
Despite recent record outflows, the spot Bitcoin ETF market remains in a favorable investment environment. If the movements of funds from GBTC are related to Genesis Global and the lawsuit, then the influx of funds into cryptocurrency funds will soon be restored, Coinbase experts believe.
Crypto exchange experts also note the importance of a possible interest rate reduction by the US Federal Reserve. Exchange officials expect prices to continue to fall and the top financial regulator's policies to continue to ease. All this will have a positive impact on the cryptocurrency market.
Coinbase has little faith in US authorities approving spot Ethereum-ETFs in May 2024. Currently, industry analysts estimate this opportunity at only 17%.
Earlier, the head of the US Securities and Exchange Commission (SEC), Gary Gensler, announced at a conference at Columbia University Law School that the cryptocurrency market needs an analogue of disinfection.
Source: Bits
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