U.S.-based Bitcoin ETFs are facing a slowdown after a strong start to the year. Inflows have nearly returned to early January levels.
Bitcoin ETF Stagnation
According to SoSoValue, cumulative inflows are now at $35.20 billion, only $200 million higher than on January 2, reflecting a significant cooling of investor enthusiasm.
Decline in Asset Value
Bitcoin's price struggled in February, causing a nearly 25% drop in ETF assets under management since their all-time high at the end of January. BRN analyst Valentin Fournier explained that investors eager to enter the market have already done so. For inflows to rise, fresh demand or broader market catalysts are needed.
Altcoin ETFs: New Opportunities
As Bitcoin ETFs struggle, asset managers are shifting focus to altcoin ETFs, hoping to attract fresh capital. Proposed funds include those tracking Polkadot, Axelar, Avalanche, and more. Litecoin, XRP, Solana, and Dogecoin ETFs are seen as most likely to gain regulatory approval due to their higher market adoption and liquidity. However, regulatory approval remains pending.
Bitcoin ETFs face challenges in sustaining interest, while altcoins attract attention for new opportunities. Regulatory approval remains key for future development.
