BTC ETFs experienced a significant outflow of $226.2 million in just one day, indicating a struggle for bitcoin to increase in value. This situation is reminiscent of what happened at the end of April, where a staggering $1.2 billion was withdrawn from BTC ETFs.
Over the past three days, these ETFs have seen total withdrawals of $564 million, despite a brief period of inflows on Wednesday. If the trend continues, the outflows in the coming days could potentially match the billion-dollar outflows seen in April.
Fidelity’s GBTC saw $106 million in outflows, Grayscale’s GBTC had $62 million withdrawn, and ARK Invest’s ARKB experienced $53 million in outflows. However, IBIT, BlackRock’s fund, managed to record $18 million in inflows, making it the only product with a net positive. It has maintained a 44-day streak of seeing gains in funds. Other ETF providers did not show any significant outflows or inflows.
Wednesday was a standout day this week as it saw inflows of around $100 million into ETFs. This coincided with the release of the US Fed’s inflation report, which revealed lower-than-expected inflation rates. This news briefly pushed BTC’s price to $70,000 from $68,000, only to see it drop back down afterward.
Despite this brief uptick on Wednesday, BTC has struggled to gain momentum over the past week. The release of the US government’s non-farm payroll numbers, indicating the addition of 272,000 new jobs, led to a massive selloff of $450 million worth of BTC.
The outflows from ETFs can be attributed to BTC’s recent bearish trends, with investors wanting to secure their funds before the asset’s value decreases further. Additionally, experts believe that the approval of ETH ETFs this summer may have influenced investors to consider moving their funds from BTC to ETH ETFs once they are available. This could explain the rush to liquidate BTC ETF positions following the news about ETH ETFs.
Overall, the cryptocurrency market continues to be volatile, with investors closely monitoring developments in ETFs and other financial products tied to digital assets. It remains to be seen how these recent outflows will impact the overall market and investor sentiment moving forward.