Bitcoin ETF Performance Tracks Underlying Asset; Says Nate Geraci
Highlights
- Nate Geraci says that Bitcoin ETF products are early in adoption.
- Spot BTC ETFs in the United States continue to underperform; on the week's final trading day, there was a net outflow of $83.6 million.
- The sole Bitcoin ETF experiencing inflows was Ark 21Shares (ARKB).
With a slight tilt in Bitcoin ETF trading, Nate Geraci, the president of The ETF Store, said that the performance of the exchange traded funds is directly related to the performance of the asset. This implies that since BTC prices have been directing the performance of Bitcoin ETFs any price change will directly reflect on the ETF inflow or outflow.
Bitcoin ETF Still New in Adoption
Nate Geraci says that Bitcoin ETF products are early in adoption. Once the adoption starts picking pace, the trading volume will also surge accordingly. He adds that that the flows in any ETF will not always be a straight line and Bitcoin ETF is no exception. There will be days with outflows as well.
Read Also: Polygon Achieves Major Milestone with Robinhood Integration
Bitcoin ETF Lag Trading Performance
Spot BTC ETFs in the United States continue to underperform; on the week’s final trading day, there was a net outflow of $83.6 million. The $82.4 million withdrawal from Grayscale GBTC, which was somewhat less than the previous two days’ outflow, shows that are dicey about the growth of the exchange-traded funds.
This is largely the result of monthly options expiration and rising PCE inflation in the context of Bitcoin’s recent underperformance. Furthermore, the financial world was rocked by the DTCC’s update on collateral values for specific securities, particularly ETFs that held BTC or other cryptocurrencies as assets.
Bitcoin ETF Interest Tumbles
The interest in the ETF market has again been overshadowed by outflows, despite earlier this week’s resurgence when net inflows into Bitcoin ETFs were observed. $83.6 million was the total net outflow of spot BTC ETFs, as per data released on April 27 by Farside Investors and Bloomberg. Volumes and purchasing activity in the 11 listed ETFs were much lower, making it another disappointing day.
The sole Bitcoin ETF experiencing inflows was Ark 21Shares (ARKB). It sold all of its assets in the ProShares BTC Strategy ETF (BITO) and only received $5.4 million in inflows despite anticipation of purchases from the ARK funds. The price of the shares dropped 1.84% but increased 0.61% after market hours.
Read Also: Ace Exchange Founders Face 20-Year Sentence in Fraud Case
- LBank Signs Sponsorship Deal with Argentine National Team, Launches $100M Bonus
- ASTER Leads Perp DEX Volumes Despite $4.8M Wintermute Transfers
- USDH Launch Boosts Hyperliquid Amid Competitive Market Pressure
- SEC to Decide on Six Spot XRP ETF Applications in October
- Ripple Partners with Ondo Finance to Tokenize U.S. Treasuries on XRPL
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
