Last week was difficult for Spot Bitcoin ETFs as they failed to attract strong flows day after day. As a result, these Spot Bitcoin ETFs have witnessed consecutive daily outflows every day of the past week, indicating that bullish sentiment among institutional traders may actually be waning. This appears to have been reflected in the price of Bitcoin, as the cryptocurrency has fallen so low as $61,370 during the week.
Bitcoin ETFs See Sustained Outflows
Investor interest in spot bitcoin ETFs soared throughout February and early March, amid Bitcoin’s rise, pushing its price to a all time high of $73,737.
This peak investor interest has seen 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 for beat a four-day outflow streak set 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. millions. At the same time, Grayscale’s GBTC set a new record for the highest daily flow.
BitMEX also reveals that the world’s largest crypto asset manager saw redemptions of 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 received. 5th day of net outflows. Total net outflow of US$52 million on the day. Blackrock with record entry of US$ 18.9 million pic.twitter.com/63u297xh8d
– BitMEX Research (@BitMEXResearch) March 23, 2024
Grayscale’s exit was not particularly surprising considering the fund has witnessed consistent daily outflows since its 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 GBTC’s outflows.
Particularly noteworthy is the fact that Blackrock (IBIT), which has consistently been the target of the majority of inflow, set a new inflow low of $18.9 million on Friday, March 22. Fidelity, on the other hand, also saw its inflow drop to as low as $5.9 million on Monday, March 18.
Bitcoin is now trading at $65.122. Chart: TradingView
Can Bitcoin Price Recover?
The big question now is whether Bitcoin can stage a strong recovery and reclaim its recent all-time high above $73,000. A continuation of exits of Spot Bitcoin ETFs could weigh even more on the price of Bitcoin.
Interestingly, the weak inflow is not actually related to low trading activity, as trading volume remained significant throughout the week. Data shows that the cumulative trading volume of the 10 ETFs now stands at $164 billion, after witnessing $22.71 billion in trading volume last week.
After a week of deep exitsthe next few days will be crucial in determining the next big move in the price of Bitcoin. Despite the difficult week, Bitcoin still has a chance to recover back to $73,000 or more, especially as the next Bitcoin Halving Event.
Featured image from Pexels, chart from TradingView
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