![Spot Bitcoin ETFs Sees 3rd Consecutive Day of Outflow Streak](https://coincult.com/wp-content/uploads/2024/05/images-2024-05-11T015931.914.jpg)
Spot Bitcoin exchange-traded funds (ETFs) saw crypto investors withdraw funds for the third day straight on April 26th, 2024. According to SoSoValue, over $83 million left these funds that day. The largest Bitcoin fund, GBTC, lost around $82 million alone. Since becoming an exchange-traded fund in January, GBTC has seen investors withdraw a massive $17 billion.
![](https://www.tronweekly.com/wp-content/uploads/2024/04/Screenshot-2024-04-27-201402.png)
While the reasons for sustained crypto outflows can be debated, the Depository Trust and Clearing Corporation (DTCC) made an announcement that may be impacting crypto investor sentiment. Starting April 30th, 2024, the DTCC will not assign any collateral value to ETFs or similar investments holding Bitcoin or other cryptocurrencies as underlying assets. This change means market makers trading these instruments will need to provide more margin.
Furthermore, the DTCC decision comes when there is waning investor confidence in cryptocurrencies. A research group named 10x Research noted on April 27th that Bitcoin costs have been creating lower highs. This suggests a potentially bearish pattern that may emerge. Their previous analysis on April 4th had pointed to a possible reversal in funds flowing into Bitcoin ETFs. They called this a “self-reinforcing Bitcoin mechanism” back then.
DTCC’s Impact on Spot Bitcoin ETFs
The recent string of outflow from Spot Bitcoin ETFs and the DTCC’s tighter rules for collateral present a challenge for the crypto industry. Yet, it’s key to keep in mind that this is a relatively new type of asset, and some difficulties are normal as it grows. As rules change and the market becomes more established, these obstacles could become stepping stones toward a stronger and safer system for investing in cryptocurrencies.
However, cryptocurrency enthusiasts like K.O. Kryptowaluty highlight the DTCC’s decision may have a restricted influence, mainly affecting settlements between entities within the line of credit arrangement. In addition, only time will unveil how these developments progress and their lasting impact on the future of Spot Bitcoin ETFs.
Furthermore, the Hong Kong Stock Exchange (HKEX) unveiled a pivotal decision on April 27th, incorporating Bitcoin and Ethereum exchange-traded funds into their central clearing mechanism. This strategic move aims to streamline trading procedures and settlement processes for these innovative investment vehicles. Consequently, such ETFs may garner heightened appeal among investors residing within the region.