The past week has been a challenging one for Spot Bitcoin ETFs, as they have experienced a lack of significant inflows day after day. This trend has led to consecutive daily outflows throughout the week, signaling a potential decrease in bullish sentiment among institutional traders. The impact of this lack of interest can be seen in the price of Bitcoin, which dropped to as low as $61,370 during the same period.
Spot Bitcoin ETFs saw a surge in investor interest during February and early March when Bitcoin was experiencing a bullish trend. This surge pushed the price of Bitcoin to an all-time high of $73,737, resulting in these ETFs breaking new trading records in the US. However, the tides have turned, with these ETFs now setting a negative record of five consecutive days of outflows, surpassing a previous four-day streak in January.
Data from BitMEX Research indicates that these Spot Bitcoin ETFs witnessed consecutive outflows of significant amounts, such as $154.4 million, $326.2 million, $261.6 million, $93.1 million, and $51.6 million. Similarly, Grayscale’s GBTC experienced a record daily outflow, with redemptions of 9,539.7 BTC worth over $642.5 million on a single day, marking the largest outflow in GBTC’s history.
Contrary to previous trends, even ETFs like BlackRock (IBIT) and Fidelity (FBTC), known for their inflows that offset GBTC’s outflows, faced weak inflows. Notably, Blackrock (IBIT) recorded a new low inflow of $18.9 million, while Fidelity saw its inflow drop to $5.9 million. These weak inflow figures raise concerns about the overall sentiment surrounding Bitcoin ETFs.
The looming question now is whether Bitcoin will be able to recover its previous all-time high above $73,000. Continued outflows from Spot Bitcoin ETFs could exert further pressure on Bitcoin’s price. Despite the challenges faced by these ETFs, Bitcoin still has a chance for recovery, especially with the upcoming Bitcoin halving event on the horizon.
Trading volume remains significant, despite the weak inflow into Spot Bitcoin ETFs, with a cumulative trading volume of $164 billion and $22.71 billion in trading volume recorded last week. The following days will be crucial in determining the direction of Bitcoin’s price movement. Investors are advised to conduct thorough research before making any investment decisions, as the market continues to react to the changing dynamics surrounding Bitcoin ETFs.
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