Consolidation in the market - will lower ETF inflows follow?

Bitcoin may soon clear its “biggest hurdle” as GBTC capital outflows diminish, easing selling pressure from the leading fund. However, US Bitcoin spot index funds (ETFs) took centre stage this week for reasons to the contrary.
Capital inflows have recently fallen significantly compared to the beginning of the month, while capital outflows from the GBTC have reached record highs at the same time. This resulted in five days in a row in which an overall net outflow was recorded.
However, the timing of this development is not entirely coincidental, as rumours suggest that the insolvent crypto lender Genesis has recently sold considerable GBTC shares.
If these sales have now been completed, the selling pressure on ETFs could quickly ease again.
“Net outflows from Bitcoin ETFs fell to -$51.6m yesterday, led by a significant reduction in GBTC selling,” as investor Alistair Milne notes in this context.
“Many investors have been shaken out of the market and many are still waiting for further declines. At the current issuance rate, we would need just under USD 57.6 million in capital inflows per day at a price of USD 64,000 to buy up the coins mined daily. In less than a month, this sum will be reduced to USD 28.8 million.”

The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, is once again firing back at the crypto industry, claiming that some market participants are deliberately circumventing the regulator’s registration requirements. The SEC chairman argued in favour of the benefits of mandatory disclosure for market participants and quoted Supreme Court Justice Louis Brandeis, who has said in the past that “sunlight is the best cure for blind spots.”
“There are still those who would like to erode the SEC’s disclosure rules,” the SEC chief said. He continued: “There are participants in the crypto markets who are trying to circumvent these registration requirements. No registration means no disclosure requirements. Many would agree that the crypto markets could use a little more sunlight.”
Gensler’s comments come at a time when the SEC has brought several prosecutions against major crypto companies, including Kraken, Binance, Ripple and Coinbase. However, many crypto companies and industry stakeholders have repeatedly called on the SEC to establish clear rules to keep innovation in the sector in the United States.
This clearly shows how regressive the SEC is acting and how immensely important it is to follow a regulated path, as Teroxx has done since the beginning and will continue to do!

During Bitcoin’s recent downturn, the Bitcoin spot ETF market has also been conspicuously weak of late. Despite the continued decline in net inflows, Ki Young Ju, prominent analyst and CEO of CryptoQuant, predicts a resurgence of Bitcoin spot ETFs in the near future.
In a post on X on 22 March, Ki Young Ju stated that net inflows into Bitcoin ETFs could soon increase again, even if the price decline continues. Using data from the Netflow Trends metric, the analyst noted that demand for Bitcoin ETFs usually picks up when the cryptocurrency reaches support levels.
It should be noted that ETF buyers, in particular, have an on-chain cost basis of around USD 56,000. This suggests that significant Bitcoin holders, particularly ETF investors, have currently purchased Bitcoin at an average price of USD 56,000.
In line with this pattern, the expert expects significant inflows into the Bitcoin ETF spot market should BTC reach the aforementioned price threshold.
Data shows that the Bitcoin bull cycle is probably not over yet, considering that investment flows from new investors are relatively low and price valuation metrics are still below the levels of past market highs.
Regardless, the upcoming Bitcoin halving is likely to be an important factor in boosting the BTC price.