bitcoin's recent unimpressive price action is reflecting on the minds of institutional investors, with recent data highlighting its bearish sentiment. This has caused a wave of bitcoin-etf/” rel=”nofollow”>massive departures of bitcoin-etfs-may-open-mainland-chinese/” rel=”nofollow”> bitcoin investment productswhich could negatively affect the flagship cryptocurrency.
bitcoin investment products record $284 million in outflows
CoinShares revealed in a blog post that bitcoin investment funds recorded an outflow of $284 million last week. It is said that the majority of these departures came from the bitcoin-etfs-approved-by-us-sec/” rel=”nofollow”>US Spot bitcoin ETFwhat did you see bitcoin-spot-etfs-record-outflow/” rel=”nofollow”>exits of 156 million dollars last week. CoinShares noted that last week was the first time these funds recorded such a measurable number of outflows.
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These US Spot bitcoin ETFs Had a Week to Forget Last Week, as Even BlackRock's bitcoin-tidal-wave-blackrock-etf-leads-inflows/” rel=”nofollow”>iShares bitcoin Trust (IBIT) recorded its first day of outflows since its launch, with almost $37 million coming out of the fund.
CoinShares suggested that the magnitude of the outflows was likely due to bitcoin falling below $62,000, which they estimate is the average purchase price of these ETFs since their launch. Therefore, they claim that bitcoin's decline may have triggered automatic sell orders.
Until now, institutional investors had already shown mixed feelings towards these funds thanks to the recent bitcoin price action. As such, it makes sense that bitcoin's drop below $60,000 would make them bitcoin-etf-noobs-panic-selling/” rel=”nofollow”>panic selling instead of maintaining their positions.
Despite this development, CoinShares noted that the bitcoin and ethereum Spot ETFs in bitcoin-etfs-may-open-mainland-chinese/” rel=”nofollow”>Hong Kong which launched last week, were a bright spot, recording $307 million in admissions in the first week of operations. The launch of these funds could be timely, with bitcoin needing a catalyst to continue its upward trend.
Interestingly, CoinShares revealed that bitcoin was the only crypto asset to record outflows. For its part, ethereum broke its seven-week streak of record outflows, with $30 million flowing into ethereum investment products. Other altcoins like avalancheCardano and Polkadot also recorded inflows.
Spotting bitcoin ETFs Still Unclear
With bitcoin-reaches-largest-discount-ever/” rel=”nofollow”>GBTC in grayscale Recording its first day of net inflows last week, there was a feeling that such a development could spark a bitcoin-spot-etfs-record-outflow/” rel=”nofollow”>change in outputs that bitcoin Spot ETFs have been tracking. However, that has not been the case. On May 7, these funds x.com/FarsideUK/status/1788052170845065443″ rel=”nofollow”>Recorded a net outflow of 15.7 million dollars.
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bitcoin-etf/” rel=”nofollow”>GBTC was once again the main culprit: the fund recorded a net outflow of $28.6 million. These departures have continued to affect bitcoin-decline-is-a-bear-trap/” rel=”nofollow”>The price of bitcoin negatively, given the amount of selling pressure it is building on the flagship cryptocurrency.
At the time of writing, bitcoin is trading at around $62,300, down more than 2% in the last 24 hours, according to bitcoin/” rel=”nofollow”>data from CoinMarketCap.
x/xULHJsKQ/” alt=”Tradingview.com bitcoin Price Chart” width=”3286″ height=”1576″ loading=”lazy”/>
btc price at $62,300 | Source: BTCUSD on Tradingview.com
Featured image from The Independent, chart from Tradingview.com
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