Since the approval of multiple bitcoin ETPs by the SEC in the fourth quarter 2021, Bitcoin ETPs are more widely used than ever. These ETPs had enjoyed a successful run, with many millions of dollars flooding into them. They provided a way for institutional investors and others who didn’t want any direct exposure to the digital asset to trade on it. As outflows begin to become more common, however, the winds are changing.
Bitcoin ETPs Under Attack
While the market continues to reel from the new month’s entry, the negative effects of April still linger. Due to April being historically bearish, bitcoin suffered a lot of damage in the market which unsurprisingly led to the ETPs.
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Outflows were a result. The highest ever monthly net outflows in Bitcoin ETPs history was recorded for April. This awful month saw a staggering 14,327 BTC leave the market. The total asset under management (AUM), of this digital asset, was impacted by this. By the end of March, only 187,000 BTC had been in AUM.
The worst month ever for ETPs is evident. ETPs in the US and Canada were also affected by this onslaught. US ETFs had seen a 3,312 BTC withdrawal, and their Canadian counterparts experienced a 7100 departure from BTC ETPs. In North America, this translated into a 10% decrease in BTC total assets.
Outflows rock BTC ETPs | Source: Arcane Research
Important to remember that US outflows have been recorded in BITO. In April, exposure to US ETFs via bitcoin also fell significantly. The current level is 11% lower than it was in April 2017.
It was similar to the American trend in Europe. It was the third time that 3,974 BTC left the market in the area, after it had struggled with outflows over the past year. April marked 10 of the 16 months in which European ETPs were rocked with outflows.
Source : BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
Brazil was the country that saw the April bleeding months pass. It did not record any inflows. However, they were small and relative to global trends.
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The outflows recorded during April effectively erased any gains made in March by ETPs. There is some good news in this sea of negative news. Australia is set to trade crypto ETFs.
One of the ETFs offering direct exposure to Bitcoin has been revealed. Other ETFs will be limited to Canadian BTC ETFs. This could prove very lucrative for Canadian crypto ETPs in the long-term.
Featured Image from Nikkei Asia. Charts from Arcane Research and TradingView.com.