Spot Bitcoin ETF Loses $35 Million as Capital Exodus Continues

After a brief period of inflows, spot Bitcoin ETFs are back to recording outflows, with the most recent reaching $35 million.

Another Day of Spot Bitcoin ETF Outflows

In today’s update provided by blockchain analytics platform Lookonchain, it was revealed that Grayscale lost 535 Bitcoins due to capital outflows.

This Bitcoin outflow was valued at approximately $30.7 million, leaving the investment asset management firm with 274,734 BTC ($15.76 billion). Additionally, some other Bitcoin spot ETF issuers were not excluded from the outflows. The Invesco Galaxy Bitcoin ETF also lost 74 BTC, leaving it with 6,804 BTC. The outflows from both issuers were rounded up to 609 BTC, or the equivalent of $35 million.

BlackRock’s IBITFidelity’s FBTC, ARK 21Shares’ ARKB, and the other four U.S. spot Bitcoin ETFs saw no outflows. Among them, BlackRock currently holds the largest Bitcoin holding with 307,206 Bitcoins.

Similarly, the Bitcoin ETF saw a smaller outflow on Wednesday. Recorded outflows exceeded $20 million with Grayscale GBTC Grayscale’s GBTC was also the largest contributor to this outflow, with $26.99 million leaving the fund, while Fidelity’s FBTC saw a net inflow of $6.55 million, partially offsetting the outflow.

Meanwhile, BlackRock’s IBIT saw no flows for the day. The trading volume of these Bitcoin funds totaled $800 million that same day. This is a significant drop from $995 million on Tuesday.

These sentiments, including a slowdown in activity and net capital outflows, could be a sign of a change in investor sentiment or even market dynamics. Such fluctuations are not unfounded in the volatile cryptocurrency market.

Bitcoin Shows Bearish Signs

Meanwhile, the ETF’s underlying cryptocurrency is bleeding and struggling to hold onto support. The coin’s value recently saw a sharp drop to $57,000.

The downtrend surprised many investors and sparked debates within the cryptocurrency community. The selloff appears to be driven by a variety of factors, including sales by speculative investors amid the global financial crisis. Bitcoin ETF and the recent halving event. Additionally, the liquidation of overleveraged positions and unexpected sales such as The German government liquidation of seized Bitcoins in parallel with that of United States Government contributed to the downward trend

Economist and crypto-critic Pierre Schiff believes that the fall in the price of Bitcoin could continue. He even sees the currency falling below the $52,000 mark.

Learn more: Ethereum Whale Threatened With Liquidation, ETH Price Falls

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