Spot Bitcoin (BTC) exchange-traded funds (ETFs) saw outflows on Monday as the flagship cryptocurrency dropped below $67,000.

According to data from investment firm Farside, outflows from Grayscale’s Bitcoin ETF (GBTC) surged once again, reaching over $300 million on that day.

The combined net outflow for Bitcoin spot ETFs reached $85.84 million, driven primarily by the significant outflow from GBTC. 

On the other hand, BlackRock’s ETF IBIT saw a net inflow of $165 million, and Fidelity’s ETF FBTC recorded a net inflow of $43.99 million. 

Overall, Bitcoin spot ETFs have attracted a cumulative net inflow of $12.04 billion.

According to SoSoValue, Bitcoin spot ETFs had a total net outflow of $85.84 million on April 1. Grayscale ETF GBTC had a single-day net outflow of $302 million, BlackRock ETF IBIT had net inflow of $165 million, Fidelity ETF FBTC had net inflow of $43.99 million, and the Bitcoin… pic.twitter.com/hCp6nk7T1Q

— Wu Blockchain (@WuBlockchain) April 2, 2024

Bitcoin Price Sees Sudden Drop 

The negative flows in Bitcoin ETFs coincide with a correction in the price of Bitcoin, which dropped 5% to as low as $66,000. 

As of now, the leading cryptocurrency is trading at $66,858, down by more than 4% over the past day. 

Interestingly, the correction comes just weeks before the upcoming Bitcoin halving event, which is expected to occur in 19 days. 

The correction might dampen analysts’ expectations of Bitcoin reaching $75,000 by the halving event.

As April begins, the retreat in the crypto market suggests a weakening momentum in the recent rally, particularly characterized by Bitcoin’s surge to an all-time high. 

The shift in sentiment reflects a cautious stance prevailing in global markets, driven by lingering inflationary pressures in the United States. 

Consequently, investors are scaling back their expectations for looser monetary policies and interest rate cuts from the Federal Reserve.

Stefan von Haenisch, the head of trading at OSL SG Pte in Singapore, noted that the anticipation of reduced interest rate cuts by the Fed is reverberating across the cryptocurrency sphere. 

This sentiment is evident in the broad sell-off observed in the crypto market, impacting various sectors. 

Notably, meme coins and other sectors that have outperformed Bitcoin in the past six months are particularly affected by this cautious mood.

Interest in Spot Ethereum ETFs Surge

Last week, crypto investment firm Bitwise submitted an application to the SEC to launch a spot Ethereum ETF.

The move positions Bitwise as one of many contenders in the race to introduce the first Ethereum spot ETF, following the successful launch of Bitcoin spot ETFs earlier this year.

Bitwise’s introduction into the Ethereum spot ETF competition aligns with the growing interest from traditional financial firms to offer such products.

In recent months, industry giants such as BlackRock, Grayscale, and VanEck have also filed proposals with the SEC to launch their own Ethereum spot ETFs. 

The increasing number of applicants highlights the demand for investment products that offer exposure to the second-largest cryptocurrency without requiring investors to directly purchase and store it themselves.

The SEC has delayed decisions on several high-profile Ethereum spot ETF applications, including those from BlackRock, Grayscale, Fidelity, Invesco, and Galaxy Digital. 

Still, some experts maintain optimism regarding the prospects of Ethereum spot ETFs. 

Standard Chartered, a British multinational bank, expects the SEC to approve such products by May, citing the lack of designation of ether as a security by the regulator. 

The post Spot Bitcoin ETFs Continue to See Net Outflows as BTC Price Drops Below $67K appeared first on Cryptonews.