US Bitcoin ETFs Experience Persistent Outflows: A Deep Dive
The landscape of US-based spot Bitcoin ETFs (exchange-traded funds) has been notably turbulent, as they have encountered their second consecutive week of substantial outflows over the latest five-day trading timeframe. This trend underscores a palpable shift in investor sentiment across the United States. Over the past year, robust inflows into the US Bitcoin ETF market have often aligned with bullish movements in Bitcoin’s price. However, Bitcoin’s price has been in a state of consolidation recently, finding it challenging to gather any significant upward momentum.
Bitcoin ETFs Face Consecutive Outflow Challenges
Recent market analytics indicate that the US Bitcoin ETFs experienced a total daily outflow of $62.77 million on Friday, February 21. This marks the fourth consecutive day, and the eighth day out of the last nine trading sessions, that these crypto-oriented products have seen a net capital outflow. Notably, the Grayscale Bitcoin Trust, identified by the ticker GBTC, bore the brunt of these withdrawals on Friday, with over $60 million in outflows concluding the week.
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The Bitwise Bitcoin ETF (BITB) was not far behind, witnessing significant withdrawals to the tune of $16.58 million. Fidelity Bitcoin Fund (FBTC) also faced net outflows amounting to $12.47 million on the same day. In contrast, BlackRock’s IBIT, which is the largest Bitcoin ETF by net assets, recorded positive capital inflows of $21.64 million. Similarly, VanEck’s CBOE registered an inflow of $4.71 million. The $62.77 million single-day net withdrawals culminated in the US Bitcoin ETFs recording weekly outflows surpassing $559 million. These figures were largely influenced by substantial withdrawals observed on Thursday, February 20.
Significant Market Movements: A Closer Look
According to data from SoSoValue, a considerable $365 million exited the Bitcoin ETF market on Thursday. The major contributors to this exodus were BlackRock’s IBIT, with $112 million in outflows, and Fidelity’s FBTC, which saw $88 million withdrawn. This past week marks the second successive week of notable outflows from US-based spot Bitcoin ETFs. Between February 10th and 14th, these exchange-traded products experienced a comparable net weekly outflow of over $585 million. Notably, the Ethereum ETF market also registered a net daily outflow of $8.92 million on the same Friday. Despite this, US-based Ethereum exchange-traded funds managed to achieve a cumulative net inflow of $1.61 million over the past week.
The Current Landscape of Bitcoin Prices
Bitcoin, the leading cryptocurrency, remains in a sideways trading pattern within the $94,000 to $99,000 range. At the time of this report, Bitcoin’s price is approximately $96,610, indicating a minor 0.6% decrease over the past 24 hours. This stagnation in price movement reflects the broader market sentiment and investor caution.
The intricate dynamics of the cryptocurrency market, combined with fluctuating investor confidence, continue to shape the performance of Bitcoin ETFs. As market participants closely monitor these trends, the future trajectory of Bitcoin and its associated financial products remains a topic of keen interest and speculation.
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