Bitcoin Suffers Massive Outflows Amid Crypto Market Uncertainty, Tops $284 Million
08 Mai 2024 - 4:00PM
NEWSBTC
The recent unimpressive price action of Bitcoin is playing out in
the minds of institutional investors, with recent data highlighting
their bearish sentiment. This has led to a wave of massive outflows
from Bitcoin investment products, which could negatively
impact the flagship crypto. Bitcoin Investment Products
Record $284 Million Of Outflows CoinShares revealed in a blog post
that Bitcoin investment funds recorded an outflow of $284 million
last week. Most of these outflows are said to have come from the US
Spot Bitcoin ETFs, which saw outflows of $156 million last week.
CoinShares noted that last week was the first time these funds
recorded such a measurable amount of outflows. Related
Reading: Can Ethereum Reclaim $4,000? Fragile Fundamentals Threaten
To Send ETH Crashing These US Spot Bitcoin ETFs indeed had a week
to forget last week, as even BlackRock’s iShares Bitcoin Trust
(IBIT) recorded its first day of outflows since launch, with almost
$37 million exiting the fund. CoinShares suggested that the
magnitude of outflows was likely due to Bitcoin dropping below
$62,000, which they estimate is the average purchase price of these
ETFs since launch. Therefore, they claim that Bitcoin’s decline may
have triggered automatic sell orders. Before now,
institutional investors had already shown mixed feelings towards
these funds thanks to Bitcoin’s recent price action. As such, it
makes sense that Bitcoin dropping below $60,000 made them panic
sell instead of holding their positions. Despite this
development, CoinShares noted that the Spot Bitcoin and Ethereum
ETFs in Hong Kong which launched last week, were a bright spot,
recording $307 million in inflows in the first week of trading. The
launch of these funds could prove timely, with Bitcoin needing a
catalyst to continue its upward trend. Interestingly,
CoinShares revealed that Bitcoin was the only crypto asset to
record outflows. On its part, Ethereum broke its seven-week streak
of recording outflows, with $30 million flowing into Ethereum
investment products. Other altcoins like Avalanche, Cardano, and
Polkadot also saw inflows. Spot Bitcoin ETFs Still Not In The
Clear With Grayscale’s GBTC recording its first day of net inflows
last week, there was the feeling that such development could spark
a turnaround in the outflows that the Spot Bitcoin ETFs have been
recording. However, that hasn’t been the case. On May 7, these
funds recorded a net outflow of $15.7 million. Related
Reading: Here’s How This Ethereum Whale Made $16 Million From A
Single Trade GBTC was again the primary culprit, with the fund
seeing a net outflow of $28.6 million. These outflows have
continued to affect Bitcoin’s price negatively, given the amount of
selling pressure it is piling on the flagship crypto. At the
time of writing, Bitcoin is trading at around $62,300, down over 2%
in the last 24 hours, according to data from CoinMarketCap.
BTC price at $62,300 | Source: BTCUSD on Tradingview.com Featured
image from The Independent, chart from Tradingview.com
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