Bitcoin ETFs Bleed $358.6M in Single-Day Exodus—Traders Hit Panic Button?
Wall Street’s crypto darling takes a brutal hit as investors yank a staggering $358.6 million from Bitcoin ETFs in 24 hours. Was it profit-taking or pure fear? The market’s whispering both.
Short-term holders sprint for exits while institutions play chess—classic ’weak hands vs. smart money’ theater. Meanwhile, Bitcoin’s price chart looks like a EKG after a double espresso.
Funny how these ’regulated’ products still dance to crypto’s volatile tune. Maybe ETFs were just a fancy wrapper for the same old rollercoaster.
$105,144 ETFs traded in the U.S. halted a 10-day streak of inflows by experiencing a net outflow of $358.6 million yesterday. This marked the largest amount of capital leaving these funds since mid-March. Among the ETFs, only BlackRock’s flagship product, IBIT, managed to attract fresh capital, receiving $125 million. Meanwhile, the total ETF trading volume surged to $5.39 billion.
ContentsDetails of the $358.6 Million Outflow in ETFsThe Notable Divergence Between Bitcoin and Ethereum
Details of the $358.6 Million Outflow in ETFs
Fidelity’s FBTC fund was the first to record a significant outflow with $166.32 million, turning the market red. This was followed by Grayscale’s GBTC product, which saw a withdrawal of $107.53 million, marking its second-largest outflow this year. Additional outflows included $89.22 million from ARKB, a partnership between Ark and 21Shares, and $70.85 million from Bitwise’s BITB. VanEck, Valkyrie, Invesco, and Franklin Templeton funds also experienced double-digit outflows. Apart from IBIT’s modest inflow, every ETF experienced an outflow.
This significant outflow partially counteracted the momentum accumulated during a 10-day ETF rally, which had amounted to $4.26 billion. By Wednesday evening, the cumulative net inflow reached $45.34 billion, but fell to $44.99 billion by Thursday’s close. Nonetheless, IBIT alone still accounted for 96% of the 10-day series, adding $4.09 billion to its portfolio.
Despite increased liquidity, analysts note that profit-taking was prominent in the spot market, with large investors securing profits from recent gains.
The Notable Divergence Between Bitcoin and Ethereum
Bitcoin, which began the day volatile, saw a 1.38% decline, dropping to $106,204 due to ETF outflows. While the decrease was relatively modest, remaining below the psychological threshold of $110,000 could dampen short-term investor confidence. Yet, the substantial trading volume of $5.39 billion in spot ETFs suggests a repositioning rather than capitulation in the market. Some market observers suggest this recent outflow, the largest since the sharp sell-off on March 11, is more of a “breather” than a weariness.
Meanwhile, the interesting scenario in the ETF market continued with spot Ethereum
$2,622 ETFs witnessing a consecutive nine-day net inflow streak. Yesterday, Ethereum’s ETFs attracted $91.93 million despite the currency’s price declining by 3.3% to $2,639, showing a more fragile image compared to Bitcoin.
Some strategists believe that the divergence in ETF fund flows indicates that investors are pursuing diversification while being mindful of short-term price movements. Investors continue to rely on the macro environment for direction rather than just the recorded capital flows.
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