Crypto News– The market’s uncertainty has caused a ripple effect on Bitcoin exchange-traded funds (ETFs), witnessing an 80% decrease in net inflows.
Let’s catch up on today crypto developments
Two U.S. senators have sent a letter to Gary Gensler, urging the Securities and Exchange Commission not to greenlight any additional crypto ETFs. In parallel, a judge in the United Kingdom has officially ruled that Craig Wright is not the creator of Bitcoin.
Net inflows for spot Bitcoin ETFs decline amidst a dip in BTC price
On March 14, United States-based spot Bitcoin exchange-traded funds (ETFs) experienced a notable downturn, recording one of their lowest net inflow days at just $132 million. This marked an 80% decrease from the previous day, March 13, and represented the lowest level in the past eight trading days.
The decline on Thursday marked the second consecutive day of decreasing inflows. On Wednesday, inflows dropped to $684 million, reflecting a 38.3% decrease from March 12. Notably, Tuesday saw a record-breaking single-day inflow of $1.05 billion.
Overall, the total flow of funds into the ETFs amounted to $390 million on March 14. The Grayscale Bitcoin Trust ETF (GBTC) observed significant outflows, with $257 million exiting the fund, resulting in net inflows of $132 million. However, despite the outflow from GBTC, net flows remained positive for the day.
Furthermore, both the VanEck Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund recorded inflows on March 14, amounting to $13.8 million and $13.7 million, respectively.
U.S. Senators urge SEC Chair Gensler to halt approval of additional crypto ETFs
wo U.S. senators, Jack Reed and Laphonza Butler, are pressing Gary Gensler to halt the approval of any additional crypto exchange-traded funds (ETFs), citing significant risks to retail investors.
In a letter dated March 11, the Democratic senators expressed concerns that granting further approvals for crypto ETFs by the Securities and Exchange Commission (SEC) would expose investors to thinly traded markets vulnerable to fraud and manipulation.
Currently, there are eight proposed spot Ether ETF applications awaiting SEC approval, with hopes that other altcoins may follow suit in the future.
The senators stated, ‘Retail investors would face enormous risks from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose prices are especially susceptible to pump-and-dump or other fraudulent schemes.’
However, the letter received strong opposition from members of the crypto community.
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