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3 Stocks to Watch as Bitcoin Spot ETFs Witness Large Outflows
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The 10 leading Spot Bitcoin ETFs in the United States witnessed record-breaking outflows last Wednesday. This is the first time since their launch in the second week of January that these path-breaking crypto products have come under such pressure. On May 1, Spot Bitcoin ETFs recorded a staggering outflow of $563.7 million.
This massive sell-off follows the Fed meeting that was hosted between Apr 30 and May 1. At the conclusion of the meeting, Fed Chair Jerome Powell announced the decision to hold interest rates at their current levels. Markets were expecting a timeline for the first rate cut to be announced at the meeting. However, the central bank’s decision to keep rates unchanged and not commit to a timeline swiftly affected Bitcoin’s (BTC) price, bringing it down.
Fidelity Wise Origin Bitcoin Fund (FBTC - Free Report) experienced the largest outflow of $191.1 million, followed by Grayscale Bitcoin Trust ETF (GBTC - Free Report) , which lost approximately $167.4 million. iShares Bitcoin Trust, managed by global asset management company BlackRock, saw $36.9 million in outflows.
With the price of Bitcoin going below the $58,000 mark on Wednesday, an event that most likely sparked the ETF discount, investor optimism is currently not at a very high level. However, the nature of ETF markets ensures that there are days of steady outflows, especially when the Fed is far from dovish. With the price of BTC pushing the $60,000 level again, it remains to be seen whether the outflows recede.
At this juncture, one must track some of the major spot Bitcoin ETF applicants to understand the impact this might have on them. These are some of the biggest names in the traditional marketplace that have decided to explore the crypto space in recent months.
BlackRock, Inc. (BLK - Free Report) : This enterprise risk management and fixed-income institutional asset manager applied to launch a crypto exchange-traded fund in June 2023. BlackRock is the world’s largest asset manager. BlackRock’s expected earnings growth rate for the current year is 9.1%. BLK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Invesco Ltd. (IVZ - Free Report) : This investment management company had first filed for a Bitcoin ETF in 2021 but dropped it in October of the same year. However, in June of 2023, it joined the race to be the first investment industry giant to launch a Bitcoin ETF. Invesco’s expected earnings growth rate for the current year is 9.3%. IVZ currently carries a Zacks Rank #3.
WisdomTree, Inc. (WT - Free Report) :This ETF sponsor and asset manager also joined the crypto ETF race by applying for one in June 2023. WisdomTree’s expected earnings growth rate for the current year is 51.4%. WT currently carries a Zacks Rank #2 (Buy).
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3 Stocks to Watch as Bitcoin Spot ETFs Witness Large Outflows
The 10 leading Spot Bitcoin ETFs in the United States witnessed record-breaking outflows last Wednesday. This is the first time since their launch in the second week of January that these path-breaking crypto products have come under such pressure. On May 1, Spot Bitcoin ETFs recorded a staggering outflow of $563.7 million.
This massive sell-off follows the Fed meeting that was hosted between Apr 30 and May 1. At the conclusion of the meeting, Fed Chair Jerome Powell announced the decision to hold interest rates at their current levels. Markets were expecting a timeline for the first rate cut to be announced at the meeting. However, the central bank’s decision to keep rates unchanged and not commit to a timeline swiftly affected Bitcoin’s (BTC) price, bringing it down.
Fidelity Wise Origin Bitcoin Fund (FBTC - Free Report) experienced the largest outflow of $191.1 million, followed by Grayscale Bitcoin Trust ETF (GBTC - Free Report) , which lost approximately $167.4 million. iShares Bitcoin Trust, managed by global asset management company BlackRock, saw $36.9 million in outflows.
With the price of Bitcoin going below the $58,000 mark on Wednesday, an event that most likely sparked the ETF discount, investor optimism is currently not at a very high level. However, the nature of ETF markets ensures that there are days of steady outflows, especially when the Fed is far from dovish. With the price of BTC pushing the $60,000 level again, it remains to be seen whether the outflows recede.
At this juncture, one must track some of the major spot Bitcoin ETF applicants to understand the impact this might have on them. These are some of the biggest names in the traditional marketplace that have decided to explore the crypto space in recent months.
BlackRock, Inc. (BLK - Free Report) : This enterprise risk management and fixed-income institutional asset manager applied to launch a crypto exchange-traded fund in June 2023. BlackRock is the world’s largest asset manager. BlackRock’s expected earnings growth rate for the current year is 9.1%. BLK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Invesco Ltd. (IVZ - Free Report) : This investment management company had first filed for a Bitcoin ETF in 2021 but dropped it in October of the same year. However, in June of 2023, it joined the race to be the first investment industry giant to launch a Bitcoin ETF. Invesco’s expected earnings growth rate for the current year is 9.3%. IVZ currently carries a Zacks Rank #3.
WisdomTree, Inc. (WT - Free Report) :This ETF sponsor and asset manager also joined the crypto ETF race by applying for one in June 2023. WisdomTree’s expected earnings growth rate for the current year is 51.4%. WT currently carries a Zacks Rank #2 (Buy).