Samson Mow, a well-known Bitcoin advocate, has expressed his belief that the latest outflows will eventually reverse, cautioning the crypto community to “plan accordingly.”
Responding to concerns raised about potential decreases in Bitcoin’s 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, Mow Says
He dismissed market sentiment as a significant concern, suggesting that Bitcoin’s intrinsic qualities will prevail.
Amid these developments, spot-based Bitcoin exchange-traded funds (ETFs) have experienced significant outflows, sparking concerns within the cryptocurrency community.
Over the course of just three days this week, spot ETFs witnessed staggering outflows amounting to over $700 million. BlackRock’s IBIT, the largest Bitcoin ETF, has also experienced a notable decline in daily inflows.
All #Bitcoin ETF outflows will eventually become inflows. Plan accordingly.
— Samson Mow (@Excellion) March 21, 2024
Once the leader in the market, it has seen its daily inflow plummet to $49 million, marking the lowest amount recorded in the past weeks. This decline in inflows adds to the growing concerns surrounding the state of Bitcoin ETFs.
A key factor driving investors to exit Grayscale is the company’s higher fees when compared to its competitors in the ETF market. Lower fees offered by other providers have enticed investors away from Grayscale, leading to the substantial outflows witnessed recently.
BTCUSD trading at $65,394 on the weekly chart: TradingView.com
Experts attribute these outflows largely to a massive withdrawal of BTC from Grayscale Bitcoin Trust (GBTC), which has been plagued by consistent outflows ever since the US Securities and Exchange Commission (SEC) allowed the conversion of GBTC into a spot ETF.
Factors Contributing To The Outflows
Moreover, 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 potential approval of ETFs based on the Ethereum spot trading price.
He believes that Ethereum (ETH) should be classified as a security and expects the SEC to eventually deem it as such. He criticizes the SEC’s approval of ETH futures ETFs, considering it a significant mistake.
Mow’s warning regarding the potential reversal of 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 if Mow’s prediction of a reversal comes to fruition or if further challenges lie ahead.
While the future of Bitcoin ETFs remains uncertain, the resilience of the cryptocurrency market has been tested time and again. Investors and enthusiasts will closely keep an eye on the developments in the coming days, hoping for stability and renewed confidence in the digital asset space.
Featured image from Markus Spiske/Pexels, chart from TradingView