BTC ETFs saw $226.2 million in net outflows in a single day yesterday as bitcoin struggles to rise in price. The outflows from the regulated financial products are reminiscent of what occurred at the end of April, as $1.2 billion moved out of BTC ETFs.
Presently, the ETFs have seen net withdrawals amounting to $564 million over the past three days despite Wednesday observing inflows. The net outflows in the following days can possibly match April’s six-day outflows of over a billion.
Fidelity’s GBTC saw $106 million in outflows, Grayscale’s GBTC had $62 million withdrawn, and ARK Invest’s ARKB observed $53 million moved out. Nevertheless, IBIT, BlackRock’s fund, saw inflows of $18 million and was the only product to record a net positive. It maintains a 44-day streak of witnessing net gains in funds. Other ETF providers did not exhibit any outflows or inflows.
Wednesday was an isolated day that saw any inflows this week as ETFs gained about $100 million. The US Fed released its inflation report that day, which stated that inflation rates were much lower than expected. It excited the market as BTC’s price touched the $70,000 mark from $68,000 but fell below the price it rose from.
Despite Wednesday’s brief spike, BTC has struggled to gain momentum over the past week. It has been down since the US government released its non-farm payroll numbers that showcased the addition of 272,000 new jobs, leading to a massive selloff that saw the liquidation of $450 million worth of BTC.
The ETF outflows result from BTC’s bearish trends over the past week as investors want to get their funds out of the products before the asset dips further. Experts also feel that the withdrawals come as the news of the ETH ETFs getting approved this summer broke out. A chunk of the investors having their funds in BTC ETFs may want to move them to ETH ETFs when released, thus liquidating their BTC ETF positions the day the news about ETH ETFs broke out.
Image by Bianca Holland from Pixabay
