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This Wednesday, the Cryptocurrency market suffered strong downward pressure, with the BTC price close to losing the $100K support. The reason for this was the statements of the president of the Federal Reserve, Jerome Powell, related to the largest of the cryptocurrencies. Despite this, spot Bitcoin ETFs maintained inflows in the green.
Since January, when they went public, these investment products have remained one of the great pillars of the cryptocurrency market. They represent the maturity of Wall Street as a support for the stability of BTC. Recently, with profit taking that took Bitcoin to $94K, these products also remained positive inflows.
In this way, stability among buyers of ETF shares could translate into a factor of peace of mind for investors. In any case, the data from the Farside portal show the positive performance of these products, not only during Wednesday’s trading session with $275.3 million, but also during a string of trading days.
In that sense, this Wednesday, Bitcoin spot ETFs reached a streak of 15 consecutive days with dominant positive flows. Much of this good moment is due to the push of IBIT, BlackRock’s fund, which dominates investor preferences by a huge margin.
Bitcoin spot ETFs remain strong in terms of capital flows. Source: Farside Investors
Bitcoin ETFs Ensure Stability in the Spot Market
What for some is a deviation from the original purpose of Bitcoin, for others is a guarantee of stability. That is essentially what the spot ETFs of the largest cryptocurrency represent. The fact that in this day of market declines its flows remain positive is surely the key for BTC to remain above $100K.
As you can see, this is the first major test of this support and others will surely come. Basically, the Federal Reserve under Powell becomes the first obstacle within the State to the advancement of Bitcoin in the conversion of the US strategic reserve.
The fight by old government agencies to prevent this advance will likely cause great volatility in the coming months. Hopes that the transition to a crypto nation was going to be peaceful are now in doubt, due to these first signs of resistance.
In the midst of this context, Bitcoin ETFs are presented as fundamental pieces to maintain the greatest possible stability. In simple words, the bull run taken to its maximum expression could depend on the behavior of the large Wall Street portfolios that trade shares of these products.
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