Last week was difficult for bitcoin spot ETFs as they failed to attract strong inflows day after day. As a result, these bitcoin Spot ETFs witnessed consecutive daily outflows every day of the past week, indicating that the bullish sentiment among institutional traders could be waning. This appears to have been reflected in the price of bitcoin, as the The cryptocurrency fell to such a low level like $61,370 during the week.
bitcoin ETFs See Sustained Outflows
Investor interest in spot bitcoin ETFs it skyrocketed throughout February and early March amid bitcoin's bull run, raising its price to a its highest point of $73,737.
This peak investor interest caused ETFs to 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 capital outflows into surpassed a four-day departure 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. At the same time, Grayscale's GBTC set a new record for highest daily output.
BitMEX also reveals that the world's largest crypto asset manager recorded 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 included. 5th day of net departures. Total net outflow of $52 million on the day. Blackrock with a record minimum buy-in of $18.9 million pic.twitter.com/63u297xh8d
– BitMEX Research (@BitMEXResearch) March 23, 2024
Grayscale's exit was not particularly surprising, considering that the fund has witnessed a consistent daily outflow since its launch. The surprise came from very weak inflows into other spot ETFs like BlackRock (IBIT) and Fidelity (FBTC), whose huge inflows have always offset GBTC outflows.
Particularly noteworthy is the fact that Blackrock (IBIT), which has always been the target of the most inflows, set a new low in inflows of $18.9 million on Friday, March 22. Fidelity, on the other hand, also saw its inflows drop to just $5.9 million on Monday, March 18.
bitcoin is now trading at $65.122. Chart: TradingView
Can the price of bitcoin recover?
The big question now is whether bitcoin can stage a strong recovery and reclaim its recent all-time high above $73,000. TO continuation of departures Spot bitcoin ETFs could further weigh on the price of bitcoin.
Interestingly, the weak inflow has not really been related to low trading activity, as trading volume remained significant throughout the week. crypto-markets/bitcoin-etf/cumulative-spot-bitcoin-etf-volumes” target=”_blank” rel=”nofollow”>Data shows that the cumulative trading volume of the 10 ETFs is now $164 billion after witnessing a trading volume of $22.71 billion last week.
After Week of strong startsThe next few days will be crucial to determine the next big step in the price of bitcoin. Despite the tough week, bitcoin still bitcoin-as-you-can/” target=”_blank” rel=”nofollow”>has a chance of recovery back to $73,000 or higher, especially with the approach of the next bitcoin Halving Event.
Featured image from Pexels, chart from TradingView
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