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Post-halving left Bitcoin ETFs weathered, but they have severely outperformed the TradFi Bond ETF market this year – here’s what to know.
Yet, a recent finding by Hodl15Capital on X shows that Bitcoin ETFs have outperformed all other ETF instruments across TradFi, bond ETFs especially.
The burning question looms: What ripples will this send through Bitcoin’s price in May 2024?
https://twitter.com/HODL15Capital/status/1784706054313451814
Hodl15Capital explains that the 5 Vanguard bond funds – some of the most popular across TradFi – showed $267 Billion in total assets and lost $6.3 Billion YTD.
Bitcoin ETFs could serve as a significant driver for BTC as we head into summer.
Reflections For TradFi Markets on the Bitcoin ETFs Phenomenon
January’s green light for the first spot Bitcoin ETFs turned the market into a gold rush, with funds hoarding over 500,000 bitcoins.
Meanwhile, the dust settled, and Bitcoin’s price action dropped to 10-day lows at the end of April.
Notably, the buzz around titans like BlackRock’s IBIT and Fidelity’s FBTC Bitcoin ETFs is fizzling out, a clear omen for the markets.
After the initial rush that Bitcoin ETFs saw, the market is now experiencing a consolidation phase, with Bitcoin trading around $62,100, down 15% from its March peak of $73,000.
While $IBIT's daily inflow streak is over at 71 days, it is not done setting records. Here's a look at ETFs all time by assets after first 72 days on market. The league of own-ness of IBIT, FBTC et al shows how overheated it all was, a breather was overdue tbh @thetrinianalyst pic.twitter.com/CwarhzTOIC
— Eric Balchunas (@EricBalchunas) April 25, 2024
Despite the current pause for interest, the introduction and adoption of Bitcoin ETFs are still in their infancy, with significant milestones already achieved.
In just over three months, these funds have amassed over $54 billion in assets, and BlackRock’s IBIT has had a record 71 days of inflows.
The success of Bitcoin ETFs in the U.S. has paved the way for international expansions, with Hong Kong recently approving three spot Bitcoin and Ether ETFs.
This move could spark competitive fee reductions, similar to the ongoing fee war in the U.S., where Grayscale introduced a Bitcoin Mini Trust with notably low fees to attract investors looking for cost-efficient exposure to Bitcoin.
DISCOVER: Best Cryptocurrency Presales to Buy in April 2024 For Biggest Returns
Bitcoin and Bitcoin ETFs: BTC Price Analysis – End of April 2024
With the clock ticking down, April is on the brink of becoming Bitcoin’s worst month of 2024.
As for price action our 200-day MA for Bitcoin (red line) is riding high above the 20-day MA (blue line).
(BTCUSDT)
The 200-day MA crossing could signal that we might be in a longer-term downtrend overall. But notice how the price is pushing up towards the blue line.
If it crosses over, that’s your classic “golden cross” – a potentially bullish sign.
The Relative Strength Index also flashes mixed signals with a few peaks to 80, indicating BTC could be oversold. It’s a good idea to keep an eye on this—if it starts creeping above 70, the market might be overextended to the upside.
While Bitcoin and Bitcoin ETFs severely outperformed this year, we might be in a period of cooling before any moonshot.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
