Last week, net withdrawals from US spot bitcoin ETFs occurred, which has only happened twice in the three months since the funds’ inception.
According to BitMEX Research statistics, the 11-fund category lost $83 million in assets between April 8 and April 12. This is in contrast to net inflows of $485 million the week before.
Since January 11, spot bitcoin ETFs have received a total of $12.5 billion in positive inflows into their accounts.
According to research, the only US Bitcoin fund experiencing persistent outflows is the Grayscale Bitcoin Trust ETF (GBTC), which had $767 million depart last week.
Leaders in asset collection, Fidelity Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT), were unable to completely counteract the negative net flows in GBTC, plunging in $487 million and $90 million, respectively.
Before this week, the bitcoin fund industry had only experienced two weeks of net outflows: $417 million in assets were lost between January 22 and January 26 and $888 million was lost between March 18 and March 22.
From March 11 to March 15, net inflows for the category reached a peak of $2.5 billion in a single week.
The most recent withdrawals occurred amid a week that saw a 5% decline in bitcoin’s price, which ended on Friday at $65,650. On Saturday, it dropped below $62,000.
Following the robust advance over the last two quarters, net money leaving the US spot bitcoin ETFs indicates “increased profit-taking and investor caution,” according to a research note published on Monday by Fineqia research analyst Matteo Greco.
According to Greco, trading volumes into the funds last week were roughly ordinary, averaging $3.2 billion per day.
In a report released on Monday, James Butterfill, the head of research at CoinShares, also mentioned that investors appear to be wary now that the upward price momentum has stopped.
The price of bitcoin reached an all-time high of more than $73,500 on March 14 and as recently as April 8 was above $72,000. At 7:30 am ET on Monday, the asset’s price was trading at $66,200, down roughly 4.5% from a week earlier.
ETP and ETF activity decreased in comparison to the market as a whole, from 40% of total volumes on reliable exchanges during the previous month to 31% last week, indicating investor concern, according to Butterfill.
April 2024, Cryptoniteuae
