Bitcoin (BTC) and ETFs: interest fades, cryptocurrency price falls

April was the worst month for the price of Bitcoin since the end of 2022, and May didn’t get off to the best start for the biggest cryptocurrency either. It is being pulled down, among other things, by a noticeable drop in investor interest in the American bitcoin ETF launched this year. The new type of exchange-traded funds, which have been available from a total of ten providers since January, initially registered a massive success.

No other new ETF has seen such a strong and sustained inflow of capital shortly after its launch as the Bitcoin fund of the world’s largest manager, BlackRock. However, the flow of money into it has dried up in recent days, stopping at a total of fifteen billion dollars. And yesterday, for the first time, investors withdrew more money from the most successful fund of its category than they put into it, according to data aggregated by the Farside Investors server.

The outflow of $37 million – including other US Bitcoin ETFs, it was almost $530 million in a single day – contributed to the fact that Bitcoin is unable to get back above the $60,000 level. It crashed below it on Wednesday, and during Thursday morning one virtual coin cost “only” 58 thousand. At the same time, in March, it rose to an all-time high of 74,000. The volatility in the exchange rate is not even offset by the trading of bitcoin ETFs launched this week in Hong Kong, which has so far absorbed $217 million.