Bitcoin and Ethereum Fall as Grayscale ETF Outflows Top Ark Invest’s ARKB

• Grayscale’s Bitcoin Trust (GBTC) sheds $82 million, overtaken in outflows by Ark Invest’s ARKB on April 2nd.
• Bitcoin’s price slumps to $64,673 as crypto ETFs trade less volume than in March.
• “Automated trading protocols in Asia reacting to Bitcoin ETF data” are cited as a factor in BTC’s recent crash.

Find out why Bitcoin and Ethereum are slipping, which crypto ETFs are seeing outflows, and what analysts project for the crypto market.

Grayscale’s Bitcoin ETF Outpaced in Outflows, BTC Price Struggles

Grayscale’s flagship Bitcoin Trust (GBTC) is losing its dominance in daily outflows, surpassed by Ark Invest’s ARKB which saw $88 million leave on April 2nd. This shift comes amidst Bitcoin’s (BTC) struggle to regain upward momentum, having dipped as low as $64,673 according to CoinGecko. March saw crypto ETFs trading $111 billion, but April is unlikely to match that volume due to decreasing demand.

BlackRock and Fidelity ETFs Still Experience Inflows

Despite the overall trend, other Bitcoin ETFs still saw net inflows on April 2nd, totaling $38.8 million. BlackRock’s IBIT holds the lead, with Fidelity’s FBTC in second place.

What’s Behind Bitcoin’s Crash?

A Bloomberg report suggests that automated trading protocols in Asia, reacting negatively to Bitcoin ETF data, played a significant role in Tuesday’s large cryptocurrency selloff. These bots, as explained by Arbelos Markets, scrape ETF data and place orders accordingly. This highlights the growing potential for market influence by automated systems.

Analyst’s Perspective: ETFs vs. Other Factors

Though Bitcoin’s surge in early March aligns with strong ETF inflows, leading analyst Eric Balchunas believes larger market forces are more dominant than ETF activity when it comes to BTC price action.

Conclusion

The recent shift in outflows from Grayscale’s Bitcoin ETF paired with Bitcoin’s price struggles raises questions about investor sentiment in the near future. While some ETFs still see inflows, automated trading’s impact on the market highlights an evolving landscape for cryptocurrency.