ETFs
BTC ETFs see outflows of $226.2 million on Thursday
BTC ETFs saw net outflows of $226.2 million in a single day yesterday as the price of bitcoin struggles to rise. The outflows from regulated financial products are reminiscent of what happened at the end of April, when $1.2 billion was withdrawn from BTC ETFs.
Currently, ETFs have seen net withdrawals amounting to $564 million over the past three days, despite the inflows seen on Wednesday. Net outflows in the following days could eventually match April’s six-day outflow of more than $1 billion.
Fidelity’s GBTC saw $106 million in outflows, Grayscale’s GBTC saw $62 million withdrawn, and ARK Invest’s ARKB saw $53 million withdrawn. Nonetheless, IBIT, BlackRock’s fund, saw inflows of $18 million and was the only product to record a net positive. He maintains a 44-day streak of net fund gains. Other ETF providers saw no outflows or inflows.
Wednesday was an isolated day that saw inflows this week, with ETFs gaining around $100 million. The US Fed released its inflation report that day, which indicated that inflation rates were much lower than expected. This excited the market as the BTC price touched the $70,000 mark from $68,000 but fell below the price it had risen from.
Despite Wednesday’s brief spike, BTC has struggled to gain momentum over the past week. It has been falling since the US government released its non-farm employment figures, which showed the creation of 272,000 new jobs, leading to a massive sale this saw the liquidation of $450 million worth of BTC.
The ETF outflows are a result of BTC’s bearish trends over the past week, with investors wanting to withdraw their funds from the products before the asset falls further. Experts also believe that the withdrawals come as news of ETH ETFs being approved this summer broke. A large portion of investors with their funds in BTC ETFs may want to move them to ETH ETFs once they are released, thereby liquidating their positions in BTC ETFs the day the news about ETH ETFs broke.
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