11 May

Investor apprehension regarding potential Federal Reserve interest rate reductions remains prevalent, as withdrawals from the Grayscale Bitcoin ETF (GBTC) resume. This trend indicates a cautious sentiment prevailing in the market.

Investor Uncertainty Continues as Grayscale Bitcoin ETF Withdrawals Resume

SoSoValue data indicates that as of May 10, there were $84.6581 million in net withdrawals from spot Bitcoin ETFs overall. With Grayscale Bitcoin ETF reporting an extra $103 million in outflows on Friday, this is the second day in a row that Bitcoin ETFs have seen withdrawals. By comparison, the iShares Bitcoin Trust (IBIT) of BlackRock received an inflow of $12.4363 million, while the FBTC of Fidelity saw an inflow of $5.3039 million.

Despite this, the Grayscale Bitcoin ETF broke a record of 78 days of outflows since its introduction in January by recording inflows of $66.9 million in May. Among them, iShares Bitcoin Trust is particularly noteworthy, having raised around $16 billion in capital to far.

Large Banks Reveal Sizeable Bitcoin ETF Holdings

On May 10, amid pessimistic investor signals, Bitcoin fell to $60,200. This resulted in substantial withdrawals from all U.S. spot Bitcoin ETFs, including BlackRock's IBIT, which had its first withdrawal since January.

Prominent financial firms, including JPMorgan and Wells Fargo, have revealed their involvement in Bitcoin exchange-traded funds (ETFs), underscoring the ongoing institutional curiosity in the cryptocurrency space. JPMorgan disclosed significant stakes in a range of Bitcoin ETFs, indicating a diverse approach to investing in the space. In a similar vein, Wells Fargo revealed its ownership of 2,245 shares of the Grayscale Bitcoin ETF in a recent filing with the US SEC.

May 2024, Cryptoniteuae

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