This week has proven to be a pessimistic week for the Explore Bitcoin Exchange-Traded Funds (ETFs) as the historical products have seen consistent negative outflows in recent days in light of recent price movements.
Bitcoin Spot ETFs Record Outflows for Three Days in a Row
In a worrying development, the Discover Bitcoin ETFs have witnessed another day of negative outflows, with losses worth millions of dollars recorded after Thursday’s trading day, indicating a decline in adoption across both retail and institutional level.
Facts from London-based investment management firm Farside Investors shows that the outflow marks three consecutive days of investor withdrawal. According to company reports, the products suffered cumulative outflows of more than $81.1 million on Thursday, following withdrawals worth $30.6 million and $18.6 million on Wednesday and Tuesday, respectively.
Fidelity BTC ETF (FBTC) recorded the largest daily outflow, valued at $33.8 million, followed by Ark Invest BTC ETF (ARKB), Blackrock’s BTC ETF (IBIT) and Bitwise BTC ETF (BITB), which suffered losses of around $30, 3 million, $10.8 million. million and $6.2 million respectively. Meanwhile, the rest of the funds experienced little or no inflow.
The consistent withdrawals demonstrate the increasing unpredictability of the cryptocurrency market as investors reduce their exposure to it Bitcoin in light of increased volatility and macroeconomic concerns. It also shows that investor confidence in BTC’s short-term potential is waning, despite strong optimism after the funds launched earlier this year.
It’s worth noting that the withdrawals came after the funds recorded massive net inflows of over $235.2 million on Monday, which could be attributed to a general market recovery. However, since BTC’s price fell on Tuesday, exchange funds have seen significant outflows, indicating a cautious approach among investors.
This negative trend is seen across the broader spot ETF landscape Ethereum spot ETFs have also recorded significant outflows in addition to Bitcoin.
BTC Whales continues to stack the assets
Although the spot BTC ETFs have continuously suffered huge losses in recent days, reports indicate that whales are still accumulating the crypto assets, signaling high confidence in an impending bullish move. The ongoing trend indicates that large owners are acquiring BTC with the aim of benefiting from the long-term growth of the currency.
Negentropic, a crypto expert and trader shared development on the X (formerly Twitter) platform. According to the expert, despite the unexpected increase in inflation data in the United States, the whales are still eager to acquire BTC.
He also noted that both long-term holders and whales continue to accumulate BTC short-term holders are starting to see a recovery as foreign exchange volumes decline. As a result, Negentropic claims that “confidence in Bitcoin’s medium- and long-term performance is solid.”
Featured image from Unsplash, chart from Tradingview.com