Bitcoin Cash

Bitcoin ETF

Bitcoin

<div class="finbold">
 <p class="paragraph">Bitcoin (BTC) is experiencing a <a rel="noopener noreferrer nofollow" title="sell-" href="https://thebittimes.com/tag/sell.html">sell-</a>off from institutional investors, with <a rel="noopener noreferrer nofollow" title="outflow" href="https://thebittimes.com/tag/outflow.html">outflow</a>s from Bitcoin spot ETFs occurring for the third consecutive day. Meanwhile, the Depository Trust &amp; Clearing Corporation (DTCC) will no longer provide collateral value for cryptocurrency-based exchange-traded funds (ETFs).</p>
 <p class="paragraph">Bitcoin has seen increased demand from institutional investors through the Bitcoin spot ETFs approved in February.</p>
 <p class="paragraph">Notably, these financial instruments registered massive capital inflows in the following weeks of approval, led by BlackRock’s (NYSE: BLK) IBIT. In the meantime, BTC reached a new all-time high of $73,805 on March 14, now retraced to $63,000.</p>
 <div class="border border-red-300 rounded-xl p-6 not-prose mb-6">
  <h3 class="text-2xl font-black mt-0 flex gap-x-3 mb-5">
   <svg width="32" height="32" viewbox="0 0 32 32" fill="none" xmlns="//www.w3.org/2000/svg"><path d="M4 10.6665V25.3332C4 28.2678 6.392 29.3332 8 29.3332H28V26.6665H8.016C7.4 26.6505 6.66667 26.4078 6.66667 25.3332C6.66667 24.2585 7.4 24.0158 8.016 23.9998H28V5.33317C28 3.8625 26.804 2.6665 25.3333 2.6665H8C6.392 2.6665 4 3.73184 4 6.6665V10.6665ZM8 5.33317H25.3333V21.3332H6.66667V6.6665C6.66667 5.59184 7.4 5.34917 8 5.33317Z" fill="#EF4444"> 
    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
    </path>
   </svg> Picks for you</h3>
  <div class="grid md:grid-cols-2 gap-x-10 gap-y-3 md:gap-y-5 divide-y divide-gray-300 md:divide-y-0">
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Here is why Robert Kiyosaki believes the US economy is in depression <span class="self-center text-xs text-slate-500">3 mins ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Worldcoin crypto eyes partnership with ChatGPT’s OpenAI and PayPal <span class="self-center text-xs text-slate-500">17 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Gold price outlook for May 2024 <span class="self-center text-xs text-slate-500">18 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Bitcoin in ‘post-halving danger zone’; Here’s what it means for BTC <span class="self-center text-xs text-slate-500">18 hours ago</span>
   </div>
  </div>
 </div>
 <div class="mb-4 bg-slate-50 rounded-md layout-adjustment">
  <div id="finbold.com_middle" style="min-width: 300px; min-height: 250px;">
  </div>
 </div>
 <p class="paragraph">However, Bitcoin spot ETFs registered $421.8 million outflows for three consecutive days of losses since April 24. During this time, BlackRock’s ETF (IBIT) interrupted a 71-day inflow streak, registering $0.00 of capital flow and raising alerts.</p>
 <blockquote class="wp-block-quote">
  <p class="paragraph">“Sentiment uber bearish at $63k. Let’s see what the Hong Kong ETFs do next week but I honestly don’t expect too much of it.”</p> <cite>– WhalePanda post on X (formerly Twitter)</cite>
 </blockquote>
 <figure class="wp-block-image size-large"><img decoding="async" width="823" height="1024" src="https://cdn.thebittimes.com/images/2024/04/27/328166f82c5ae9fd96b26073daf18ece.webp" alt class="wp-image-172076" srcset="https://cdn.thebittimes.com/images/2024/04/27/328166f82c5ae9fd96b26073daf18ece.webp 823w, https://cdn.thebittimes.com/images/2024/04/27/328166f82c5ae9fd96b26073daf18ece.webp 241w, https://cdn.thebittimes.com/images/2024/04/27/328166f82c5ae9fd96b26073daf18ece.webp 768w, https://cdn.thebittimes.com/images/2024/04/27/328166f82c5ae9fd96b26073daf18ece.webp 1034w" sizes="(max-width: 823px) 100vw, 823px">
  <figcaption class="wp-element-caption">
   Bitcoin ETF Flow Table (US$m). Source: <em>Farside</em>
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="h-dtcc-no-collateral-value-for-bitcoin-and-crypto-based-etfs">DTCC: ‘No collateral value’ for Bitcoin- and crypto-based ETFs</h2>
 <p class="paragraph">In the meantime, the DTCC emitted an “important notice” to all participants of the Depository Trust Company (DTC) on April 26 regarding settlements. Essentially, the DTC will no longer recognize collateral value for loans from Bitcoin and cryptocurrencies, effective April 30, 2024.</p>
 <blockquote class="wp-block-quote">
  <p class="paragraph">“No collateral value will be given for any ETF or other investment vehicle that includes Bitcoin or any other cryptocurrency as an underlying investment, hence will be subject to a 100% haircut.”</p>
 </blockquote>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="974" src="https://cdn.thebittimes.com/images/2024/04/27/6c61c636dbc26321a6d50045e3f95a82.webp" alt class="wp-image-172078" srcset="https://cdn.thebittimes.com/images/2024/04/27/6c61c636dbc26321a6d50045e3f95a82.webp 1024w, https://cdn.thebittimes.com/images/2024/04/27/6c61c636dbc26321a6d50045e3f95a82.webp 300w, https://cdn.thebittimes.com/images/2024/04/27/6c61c636dbc26321a6d50045e3f95a82.webp 768w, https://cdn.thebittimes.com/images/2024/04/27/6c61c636dbc26321a6d50045e3f95a82.webp 1184w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Important Notice, The Depositary Trust Company. Source: <em>DTCC</em>
  </figcaption>
 </figure>
 <p class="paragraph">The DTCC and its subsidiary, DTC, are critical financial infrastructure institutions in the U.S. They provide custody, clearing, and settlement services for securities transactions. The DTC holds trillions in securities, acting as a central depository. It settles trades and facilitates collateral management.</p>
 <p class="paragraph">Overall, the Federal Reserve oversees the DTCC, and the DTC’s decisions can significantly impact market liquidity and the viability of investment vehicles.</p>
 <h2 class="wp-block-heading" id="bitcoin-price-analysis-amid-etfs-outflow-and-sell-off-alert">Bitcoin price analysis amid ETFs outflow and sell-off alert</h2>
 <p class="paragraph"><em>Autism Capital</em> explained this could mean less liquidity and more risk for investors, potentially causing the observed capital <a rel="noopener noreferrer nofollow" title="outflow" href="https://thebittimes.com/tag/outflow.html">outflow</a>s.</p>
 <p class="paragraph">Therefore, Bitcoin spot ETFs could become a less appealing investment vehicle for institutional investors. With a lower demand for this use case, BTC could be on the brink of a <a rel="noopener noreferrer nofollow" title="sell-" href="https://thebittimes.com/tag/sell.html">sell-</a>off and capital migration from this class of investors to financial products more aligned with their goals. For example, migrating to Gold, Silver, or similar funds that can work as collateral for further institutional settlements and operations.</p>
 <p class="paragraph">Since early March, the leading cryptocurrency has been trading in a $14,300 range between $59,500 and $73,800. In this context, the bottom and top of this range make for key support and resistance levels, respectively. As of this writing, BTC was trading at $62,914, potentially forming a short-term downtrend, eyeing the range’s support zone.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="662" src="https://cdn.thebittimes.com/images/2024/04/27/6da7bc16e5f4f407be8a919f99cc6b52.webp" alt class="wp-image-172079" srcset="https://cdn.thebittimes.com/images/2024/04/27/6da7bc16e5f4f407be8a919f99cc6b52.webp 1024w, https://cdn.thebittimes.com/images/2024/04/27/6da7bc16e5f4f407be8a919f99cc6b52.webp 300w, https://cdn.thebittimes.com/images/2024/04/27/6da7bc16e5f4f407be8a919f99cc6b52.webp 768w, https://cdn.thebittimes.com/images/2024/04/27/6da7bc16e5f4f407be8a919f99cc6b52.webp 1536w, https://cdn.thebittimes.com/images/2024/04/27/6da7bc16e5f4f407be8a919f99cc6b52.webp 1876w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BTC/USD daily price chart. Source: <em>TradingView</em>/Finbold
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="h-will-bitcoin-capitalization-outflow-to-other-cryptocurrencies">Will Bitcoin capitalization outflow to other cryptocurrencies?</h2>
 <p class="paragraph">Recent developments in the cryptocurrency landscape may also influence a possible capital migration from Bitcoin to other assets.&nbsp;</p>
 <p class="paragraph">In particular, the FBI seizure of the <em>Samourai Wallet</em> could favor migration to privacy-by-default cryptocurrencies, like Monero (XMR) and similar. Furthermore, the record network fees above $100 per transaction could drive the demand for low- and zero-fee peer-to-peer <a rel="noopener noreferrer nofollow" title="money" href="https://thebittimes.com/tag/money.html">money</a> protocols, like Nano (XNO), Bitcoin Cash (BCH), Litecoin (LTC), and similar altcoins.</p>
 <p class="paragraph">Investors must cautiously and closely monitor the so-called “digital gold” moving forward and make decisions accordingly.</p>
 <p class="paragraph"><strong><em>Disclaimer</em></strong><em>: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitcoin-sell-off-alert-as-etfs-take-a-hit-and-money-outflows-tbt86747.html">https://thebittimes.com/bitcoin-sell-off-alert-as-etfs-take-a-hit-and-money-outflows-tbt86747.html</a></p>

Bitcoin sell-off alert as ETFs take a hit and money outflows

Table of Contents

TheBitTimes

Other articles published on Apr 27, 2024

Bitget Introduces Trade to Mine Promotion, Giving Away All Fees to Traders

Yuga Labs Is Set To Restructure Again, Appointing New Executive

We Tracked a Shiba Inu Whale Who Dumped $1,190,000 SHIB After March Rally: He Has Been Buying a N...

Bitcoin (BTC) Price Prediction for April 27

Anticipating a Milestone: BEFE Coin’s $0.01 Ascent

DTCC Bars Bitcoin-linked ETFs as Collateral

Join our free newsletter for daily crypto updates!