April showers brought not just flowers, but a chill wind for the Bitcoin market. Spot Bitcoin exchange-traded funds (ETFs) experienced net outflows on Monday, mirroring a sudden price drop for the flagship cryptocurrency.

Grayscale Leads the Exodus:

The outflows were primarily driven by Grayscale's Bitcoin Trust (GBTC), which hemorrhaged over $300 million in a single day. This hefty exodus highlights ongoing investor jitters surrounding the industry's veteran fund.

While the overall net outflow for Bitcoin spot ETFs paled in comparison to GBTC's woes, it still marked a shift in sentiment. The combined outflow for all spot Bitcoin ETFs reached $85.84 million, chipping away at the $12.04 billion net inflow accrued since their launch earlier this year.

Bitcoin Price Stumbles Before the Halving:

The negative flows coincided with a 5% price correction for Bitcoin, sending it tumbling below the coveted $67,000 mark. As of now, Bitcoin hangs around $66,858, a more than 4% drop in just 24 hours.

This price dip throws a wrench into some analysts' predictions of Bitcoin reaching $75,000 by the upcoming halving event, just 19 days away. The correction suggests a weakening momentum in the recent rally, potentially dampening investor enthusiasm.

Global Jitters Cast a Shadow:

Experts point to a broader market shift as the culprit behind the crypto cool-down. Investor sentiment has turned cautious due to lingering inflationary pressures in the United States. As a result, hopes for looser monetary policies and interest rate cuts from the Federal Reserve are fading.

Stefan von Haenisch, a Singapore-based trading expert, highlights the impact of reduced Fed rate cut expectations on the crypto market. This cautious mood triggered a broad sell-off, impacting not just Bitcoin but also meme coins and other sectors that previously outperformed the market.

Ethereum ETF Race Heats Up:

While Bitcoin stumbles, the race for the first Ethereum spot ETF heats up. Last week, Bitwise joined the fray, submitting an application to the SEC. Their move underscores the growing interest from traditional financial institutions to offer such products, following the successful launch of Bitcoin spot ETFs.

Industry giants like BlackRock, Grayscale, and VanEck have also thrown their hats into the ring, all vying for a piece of the Ethereum spot ETF pie. The SEC has yet to make a decision on several high-profile applications, but some experts like Standard Chartered Bank remain optimistic about their approval by May.

Will Bitcoin weather the storm and climb back up before the halving? Will the SEC greenlight an Ethereum spot ETF soon? Only time will tell, but one thing's for sure: the crypto market is a rollercoaster ride, and April showers seem to have brought a temporary downturn.