Bitcoin ETFs Experience 80% Dip, US Senators Urge Caution, UK Judge Denies Craig Wright as Bitcoin Creator
Summary:
Bitcoin exchange-traded funds (ETFs) have suffered a significant 80% drop in net inflows due to market turbulence. US Senators, Jack Reed and Laphonza Butler, have urged the Securities and Exchange Commission's Gary Gensler to withhold further approvals for crypto ETFs. In other news, UK Judge James Mellor ruled that Craig Wright is not the creator of Bitcoin, Satoshi Nakamoto.
Bitcoin exchange-traded funds (ETFs) witnessed a significant 80% drop in net inflows amid turbulent market conditions. There has been mounting pressure from two US senators on Gary Gensler, of the Securities and Exchange Commission, urging him to withhold approval for further crypto ETFs. In other news, Craig Wright has been ruled not to be the founder of Bitcoin by a UK judge.
ETFs dealing in the spot Bitcoin (BTC) market in the US experienced one of their lowest net inflow days of merely $132 million on March 14. This marked an 80% drop from March 13 and the least substantial level in the last eight trading days. This was the second sequential day of depletion. Inflows on Wednesday, March 13, observed a decrease of 38.3% to $684 million from March 12. Record-breaking single-day inflows of $1.05 billion were seen on Tuesday, March 12.
The ETFs witnessed a total fund inflow of $390 million on March 14. The Grayscale Bitcoin Trust ETF (GBTC) noted another $257 million in outflows, resulting in net inflows of $132 million. On the same day, both VanEck Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund reported inflows of $13.8 million and $13.7 million, respectively. Despite the notable outflow from GBTC, net flows remained in the positive on Thursday.
Analysts believe the drop is due to investor caution precipitated by market volatility, regulatory instabilities, and broader economic factors. The forthcoming Federal Open Market Committee meeting that could potentially reveal the Federal Reserve's interest rate plans is also considered a contributing factor.
US Senators Jack Reed and Laphonza Butler have requested that Gary Gensler refrain from approving more crypto ETFs, fearing the “considerable risks” the decision could pose to retail investors. Their letter, dated March 11, argued that further approvals from the Securities and Exchange Commission would expose investors to fraud-riddled, thinly-traded markets.
While eight spot Ether ETF applications await SEC approval, the hope is that other cryptocurrencies might follow the same trajectory. The senators' claims have provoked a strong response from the crypto community, with several critics asserting the allegations are unfounded.
In separate news from the UK, Craig Wright has been judged not to be Satoshi Nakamoto, the anonymous creator of Bitcoin. This verdict was reportedly handed down by Judge James Mellor on March 14 during the Crypto Open Patent Alliance’s (COPA) lawsuit against Wright, the computer scientist who has been claiming to be Nakamoto since 2016.
Members of COPA, a 33-member organization established in 2020, include companies like Coinbase, Block, Meta, Kraken, and MicroStrategy. The group was set up to promote the use and advancement of cryptocurrency technologies while eliminating patents as a hurdle.
Published At
3/15/2024 4:00:02 PM
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