Bitcoin ETFs continued to lose money on Thursday. They have lost almost $1 billion in the last two days, as the debate over their impact on the markets grows.
SoSoValue’s data indicates that Bitcoin spot (BTC‘ETFs registered $434 Million in net outflows, after the $545 Million in redemptions of Thursday.
Monday’s $561 million in inflows The net outflows for this week were about $690 Million as of Friday.
Bitcoins’ price dropped sharply, briefly touching $60,000, for the first since October 20,24. according CoinGecko is a free online game.
Some have begun to criticize Bitcoin exchange-traded funds (ETFs) even before the market has slowed. analysts point to their resilience.
Face ETFs “paper Bitcoin” criticism
It is important to note that the word “you” means “you”. launch of spot Bitcoin ETFs in January 2024 was one of the most anticipated events in Bitcoin history, and was widely expected to accelerate BTC adoption through institutionalization.
Some analysts, however, argue that the institutionalization of Bitcoin via ETFs may have done more harm than good, claiming it contributed to undermining the asset’s scarcity — a key feature of Bitcoin’s fixed supply of 21 million coins.
“The same 1 BTC can now support an ETF unit, a future contract, a perpetual swap, an options delta, a broker loan, a structured note. All at once,” Bob Kendall is a technical analyst, and the author of The Kendall Report. He said so in a blog post published on Wednesday X.
“That is not a market. That is a fractional reserve price system,” He also added.
Kendall’s fears echo concerns previously expressed by his colleagues about Bitcoin ETFs being used as a Wall Street tool to “trade against” Bitcoin.
Before crypto ETFs launched, Josef Tětek, a Bitcoin analyst at hardware wallet provider Trezor, warned that such products could enable You can also find out more about the following: “creation of millions of unbacked Bitcoin,” Bitcoin’s value could be affected.
Related: BlackRock’s IBIT hits daily volume record of $10B amid Bitcoin crash
According to SoSoValue, the total asset value of spot Bitcoin ETFs was about $81 billion on Friday. The cumulative net flow totaled $54.3 billion.
Altcoin exchange-traded funds (ETFs) showed mixed results, with Ether and Bitcoin ETFs showing a more positive picture.ETHThe XRP funds lost $80.8 Million in withdrawals.XRPSolana) (SOLInflows into ETFs were minor, at $4. 8 million and $2. 8 million respectively.
Magazine: Bitcoin’s ‘miner exodus,’ UK bans some Coinbase crypto ads: Hodler’s Digest, Jan. 25 – 31
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Source: cointelegraph.com
