by Nayab Fatima
Almost every Bitcoin ETF in U.S. spot trade lost money during March due to growing market pessimism. Experts expect the Bitcoin market will remain in a decline for at least one year bringing stress to market participants.
According to Farside Investors Bitcoin ETFs in the United States continued losing money in March while seeing less money flow in than exit. The iShares Bitcoin Trust ETF (IBIT) from BlackRock registered the biggest decline with $552 million outflows versus $84.6 million inflow.
Wise Origin Bitcoin Fund (FBTC) from Fidelity saw customer withdrawals of $517 million while attracting only $136.5 million worth of investments during the specified period. The Bitcoin Trust from Grayscale experienced $200 million in depositions without any new investments in March.
Bitcoin ETFs Face Heavy Losses
The New York-based Bitcoin Mini Trust ETF reported more than $55 million in funding with no outflows during March. Despite this one successful fund performance the overall crypto market suffered major setbacks. Even though investor funds came into Bitcoin ETFs in March managers distributed more than $1.6 billion to investors during that same period.
The decrease of $1.3 billion during the first half of March strengthened the negative market expectations. The entire cryptocurrency ETF market sector shows signs of decline. The trading of ether-based ETFs produced negative outcomes in every day of March. BlackRock’s iShares Ethereum Trust ETF (ETHA) lost $126 million whereas no fresh investments came in.
The FETH fund suffered $73 million in outflows whereas it attracted only $21 million of new deposits. Only during March 4 did Ether funds experience increased investment totaling $14 million in assets. During most of March total Ether ETF funds left the market by more than $300 million. Market feelings have changed and people choose to decrease their digital asset investments resulting in these poor crypto exchange-traded product results.
Uncertain Future For Crypto ETFs
On March 18 CryptoQuant CEO Ki Young Ju confirmed Bitcoin bull market termination and predicted an extended bearish period. He uses data from blockchain transactions to show that new large investors are selling at lower prices when available cash becomes scarce. Ju expects Bitcoin to stay unchanging or dip in price for an approximated 12-month period.
Most investors now choose to take cryptos out of their investment products because they do so Bitcoin and Ether ETFs lose value. People who follow this market watch for key signals that might shift the downward trend including new laws, financial conditions, and participation from professional investors. Recent low market sentiment indicates according to analysts that the crypto market will likely endure difficult times before bouncing back.
People in the market closely examine if this Bitcoin and Ether ETF worseness represents a month-long stumble or the start of a more substantial price decline. The crypto future market direction will be shaped during the following months and will reveal how well crypto ETFs perform.
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