Significant Developments in Bitcoin ETFs and Crypto Market

Bitcoin Price analysis

Market instability has set off a chain reaction in Bitcoin exchange-traded funds (ETFs), with net inflows falling by 80%. Two US senators have written to Gary Gensler of the Securities and Exchange Commission, urging him not to authorize any new crypto ETF funds. Meanwhile, a UK judge has declared that Craig Wright did not create Bitcoin. Here are three key changes in the cryptocurrency market during the previous 24 hours.

Notable Movement in ETF Funds

Spot Bitcoin exchange-traded funds located in the United States saw one of its lowest net inflow days on March 14th, with only $132 million, representing an 80% fall from March 13th and the lowest amount in the previous eight trading days. The reduction on March 14th was the second straight day of declines. On March 13th, inflows were $684 million, a 38.3% decline from March 12th, when inflows hit a record $1.05 billion.

On March 14th, total fund flows into ETFs were $390 million, while the Grayscale Bitcoin Trust ETF (GBTC) had an outflow of $257 million, reducing the net inflow to $132 million. On the same day, VanEck Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund received $13.8 million and $13.7 million, respectively. Despite massive withdrawals from GBTC, net flows were positive on March 14th.

Market analysts believe that current market volatility, regulatory concerns, and macroeconomic variables are making investors wary. The current dip is also tied to the approaching Federal Open Market Committee meeting next week, which might provide insight into the Federal Reserve’s future interest rate policies.

Senators’ Letter on ETFs

Two US senators are urging Gary Gensler to halt the process of establishing new cryptocurrency exchange-traded funds, citing hazards to ordinary investors. In a letter dated March 11th, Democratic Senators Jack Reed and Laphonza Butler warned that permitting the Securities and Exchange Commission to approve further crypto ETF funds would expose investors to fraudulent and manipulative tactics in volatile markets.

There are eight spot Ethereum ETF filings awaiting SEC clearance, and there is optimism that more cryptocurrency initiatives will someday follow suit. The letter contained the following statement:

“Individual investors will face significant risks from ETP funds that reference thinly traded cryptocurrencies or those particularly susceptible to pump-and-dump schemes or other fraudulent plans.”

Coinbase’s chief legal officer, Paul Grewal, challenged the letter’s assertions, claiming that many cryptocurrencies have market data that is comparable to or better than that of the most actively traded equities.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.