Bitcoin ETF Outflows Mount As Ethereum ETF Approvals Get Delayed

The recent rally in Bitcoin BTC/USD appears to be losing steam, with investors pulling money out of Bitcoin spot exchange-traded funds (ETFs), with the ETFs having seen a net outflow of $326 million over the past two days, raising questions about investor confidence in the short term.

What Happened: Grayscale's Bitcoin Investment Trust GBTC, the most established Bitcoin ETF, witnessed a significant single-day net outflow of $443 million on March 19.

This negative sentiment was not universal, with BlackRock's iShares Bitcoin Exposure ETF IBIT experiencing a net inflow of $75.23 million on the same day.

However, this inflow pales in comparison to the overall outflows, suggesting a cautious approach among a larger portion of investors.

Adding to the uncertainty surrounding cryptocurrency ETFs, the US Securities and Exchange Commission (SEC) has delayed its decisions on two highly anticipated Ethereum ETH/USD spot ETFs.

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The Hashdex Bitcoin ETF and the Ark 21 Shares Ethereum ETF will now have their applications reviewed by May 30 and May 24, respectively.

The SEC cited the need for additional time to consider the proposals and potential regulatory concerns.

Analysts like James Seyffart of Bloomberg believe this delay significantly reduces the chance of these Ethereum spot ETFs being approved in May.

He suggested the SEC's lack of collaboration with potential issuers, including major players like BlackRock Inc. BLK, Fidelity, and Grayscale, might lead to rejections on May 23.

Price Action: At the time of writing, Bitcoin was trading at $63,880, up 0.1% over the past 24 hours, as reported by Benzinga Pro.

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Image created using artificial intelligence with Midjourney.