Samson Mow, a well-known bitcoin advocate, has expressed his belief that the latest outflows will eventually reverse, warning the crypto community to “plan accordingly.”
In response to concerns raised about potential declines in bitcoin price due to negative market sentiment, Mow emphasized the fundamental drivers of the leading cryptocurrency, highlighting its ultimate scarcity and unlimited demand.
bitcoin will prevail, says Mow
He dismissed market sentiment as a major concern, suggesting that bitcoin's intrinsic qualities will prevail.
Amid these developments, spot-based bitcoin exchange-traded funds (ETFs) have seen significant outflows, raising concerns within the cryptocurrency community.
Over the course of just three days this week, spot ETFs witnessed staggering capital outflows worth more than $700 million. BlackRock's IBIT, the largest bitcoin ETF, has also seen a notable drop in daily inflows.
All bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#bitcoin ETF outflows will eventually become inflows. Plan accordingly.
– Samson Mow (@Excellion) March 21, 2024
Once the market leader, it has seen its daily inflows fall to $49 million, marking the lowest amount recorded in recent weeks. This decline in inflows adds to growing concerns surrounding the state of bitcoin ETFs.
A key factor driving investors out of Grayscale is the firm's higher fees compared to its competitors in the ETF market. The lower rates offered by other providers have driven investors away from Grayscale, leading to the significant capital outflows seen recently.
Experts attribute these outflows largely to a massive withdrawal of btc from the Grayscale bitcoin Trust (GBTC), which has been plagued by constant outflows since the US Securities and Exchange Commission (SEC) allowed GBTC conversion. in a spot ETF.
Factors that contribute to capital outflows
Additionally, the SEC's approval of the launch of 10 spot bitcoin ETFs on January 11 further contributed to the outflows. In addition to his comments on ETFs, Mow also shared his views on the possible approval of ETFs based on the ethereum spot trading price.
He believes ethereum (eth) should be classified as a security and hopes the SEC will eventually consider it as such. He criticizes the SEC's approval of eth futures ETFs, calling it a major mistake.
Mow's warning about the possible reversal of capital outflows adds an element of uncertainty to the situation. As the cryptocurrency community grapples with these developments, industry experts will closely monitor the market to assess whether Mow's prediction of a reversal comes true or whether more challenges lie ahead.
While the future of bitcoin ETFs remains uncertain, the resilience of the cryptocurrency market has been tested time and time again. Investors and enthusiasts will closely monitor developments in the coming days, hoping for stability and renewed confidence in the digital asset space.
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