Last week was a rough week for Spot Bitcoin ETFs as they failed to attract strong inflows day after day. As a result, these Spot Bitcoin ETFs witnessed consecutive daily outflows every day last week, indicating that bullish sentiment among institutional traders may be waning. This seems to be reflected in the price of Bitcoin, as the cryptocurrency fell to a low level as $61,370 during the week.
Bitcoin ETFs are seeing continued outflows
Investor interest in Spot bitcoin ETFs skyrocketed in February and in early March, amid Bitcoin’s bull run, which sent its price to a highest ever of $73,737.
This peak investor interest helped the ETFs set new trading records for exchange-traded funds in the US. However, these ETFs have now set a negative record of five consecutive days of outflows defeated a four-day streak established in January.
According to data from BitMEX Research, these ETFs witnessed five days of consecutive outflows of $154.4 million, $326.2 million, $261.6 million, $93.1 million and $51.6 million. At the same time, Grayscale’s GBTC set a new record for the largest daily outflow.
BitMEX also reveals that the world’s largest crypto asset manager redeemed 9,539.7 BTC worth over $642.5 million on Monday, the largest single-day outflow in GBTC history.
[1/4] Bitcoin ETF Flow – March 22, 2024
All data inside. Fifth day of net outflow. Total net outflow of $52 million for the day. Blackrock with a record low inflow of $18.9 million pic.twitter.com/63u297xh8d
— BitMEX Research (@BitMEXResearch) March 23, 2024
Grayscale’s outflows were not particularly surprising, given that the fund has witnessed consistent daily outflows since launch. The surprise came from very weak inflows into other Spot ETFs such as BlackRock (IBIT) and Fidelity (FBTC), whose huge inflows have always offset outflows from GBTC.
Of particular note is the fact that Blackrock (IBIT), which has consistently been the target of the majority of inflows, hit a new inflow low of $18.9 million on Friday, March 22. Fidelity, on the other hand, also saw inflows drop to as low as $5.9 million on Monday, March 18.
Bitcoin is now trading at $65.122. Chart: TradingView
Can the Bitcoin Price Recover?
The big question now is whether Bitcoin can stage a strong recovery and regain its recent all-time high above $73,000. a continuation of the outflow of Spot Bitcoin ETFs could further depress the Bitcoin price.
Interestingly, the weak inflows are not really related to the low trading activity, as trading volume remained significant throughout the week. Facts shows that the cumulative trading volume of the 10 ETFs now stands at $164 billion, after trading volume last week was $22.71 billion.
After a week of deep outflowthe coming days will be crucial in determining the next big move in the price of Bitcoin. Despite the tough week, Bitcoin is still going strong has a chance to recover back to $73,000 or higher, especially with the next one approaching Bitcoin halving event.
Featured image from Pexels, chart from TradingView
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