U.S. spot Bitcoin exchange-traded funds (ETFs) have recorded a net outflow of $1.22 billion in the past week alone. The outflows represent the third-largest ever recorded.
The funds saw $558.4 million in net outflows on Friday alone, the largest single-day withdrawal since August, per SoSoValue data. This development comes amid ongoing market volatility and macroeconomic pressures.
The data revealed that BlackRock’s IBIT fund is the primary contributor to the outflow, followed by Fidelity’s FBTC and Grayscale’s GBTC funds.
As of Monday, Bitcoin witnessed a climb above $106,000, up 4.4% in 24 hours, Cryptonews reported. The largest crypto is trading at $ $106,166.5 at press time.
ETF Flows Deepen – Long-Term Bearish Signal or short-term Correction?
The scale of US Bitcoin Spot ETF outflows offers a clear indication that the sentiment on Bitcoin investment is shifting. Market analysts say that the recent outflows should not be construed as a long-term bearish signal, but a consolidation period.
The significant outflows from Bitcoin ETFs indicate that “institutional players are taking profits off the table,” Przemysław Kral, CEO of European crypto exchange zondacrypto, told Cryptonews.
Besides, several factors appear to be contributing to the recent withdrawal peak. This includes global economic uncertainties, including inflation rates, interest rate hikes by central banks, and geopolitical tensions that continue to generate waves of risk aversion among investors.
Bitfinex analysts argue that the early October Bitcoin move toward $125,000 leaned on strong ETF inflows and that macro shocks plus profit-taking broke the move.
“For upside to restart, ETF inflows need to climb back above $1 billion per week and broader macro needs to ease.”
Bitcoin Price Slide Vs BTC ETF Outflows
BTC spot ETF issuers reported a second consecutive week of outflows in June, followed by the crypto sliding below $100,000. Drawing parallels, BTC ETFs $1.22 billion in weekly net outflows last week, came at the brink of Bitcoin losing below $100,000.
Similarly, ETH spot ETF issuers registered net outflows of $508.2 million in the reporting week ending November 7. Ethereum fell to a November 4 low of $3,058 before rebounding above $3,400. The crypto is now trading at $3,614, a 6% increase in past 24 hours.
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