Bitcoin Falls. Why ETF Inflows Aren’t Boosting Crypto Prices.
Bitcoin and other cryptocurrencies were dropping early Tuesday. Despite strong inflows of money into exchange-traded funds tied to Bitcoin, the largest crypto isn’t receiving much of a boost.
Bitcoin was down 3.5% over the past 24 hours to $67,028. It hit a record high near $74,000 in mid-March amid a surge of interest from new spot exchange-traded funds.
“BTC Spot ETFs continued to see strong inflows, recording net inflow on every trading day last week. This mark[ed] the fourth consecutive week of net inflows,” wrote Matteo Greco, an analyst at Fineqia International.
However, those inflows don’t appear to be enough to boost the price. Traders look to be buying spot bitcoin ETFs while at the same time selling futures linked to the cryptocurrency, aiming to profit from the futures market premium, according to BitMEX Research. The selling pressure created by the futures trade therefore keeps the price in equilibrium.
Ether —the second-largest crypto—was down 4% at $3,528 but is up 21% over the past month.
The Securities and Exchange Commission recently approved critical rule changes to allow spot Ether exchange-traded funds to trade. However, it could still take weeks or months before issuers receive final permission to launch the products.
Smaller cryptos, or altcoins, were in the red, with Solana falling 3.4% and Cardano losing 1.8%. Dogecoin dropped 2.4%$
