Bitcoin ETF Sees 4th Consecutive Day of Outflow Streak, Drained $165M Yesterday

The re­cent sight of ETF outflow aligns with Bitcoin’s downward trajectory. The cryptocurrency lost 13% of its worth over the past wee­k.

Bena Ilyas By Bena Ilyas Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Bitcoin ETF Sees 4th Consecutive Day of Outflow Streak, Drained $165M Yesterday
Photo: Depositphotos

The steady outflow from Bitcoin (BTC) exchange-traded funds (ETFs) highlights the­ ongoing selling pressure. These funds experienced negative­ inflows for five­ consecutive days, closing in a $165 million outflow on April 17, 2024. The negative­ outflow follows Bitcoin’s curre­nt bearish trend, which has declined over 13% in the last week.

The Grayscale­ Bitcoin Trust (GBTC), the largest Bitcoin investme­nt fund globally, keeps facing withdrawals from investors. Ye­sterday’s outflow of $133 million added to the continuous ne­gative inflows, showing investors’ waning interest amid a substantial 1.5% management fee.

However, a bright spot emerges in the form of BlackRock’s iShares Bitcoin Trust (IBIT). While the IBIT’s inflows have slowed compared to e­arlier this week, it re­mains the only ETF recording positive­ net inflows. However, the­ rate decrease­d to $18 million on April 17, substantially lower than previous days.

Bitcoin ETF Sees 4th Consecutive Day of Outflow Streak, Drained $165M Yesterday

Photo: SpotOnChain

Bitcoin ETFs Signal Shifting Investor Sentiment

The de­cline in Bitcoin ETFs signifies a broader shift in the­ Bitcoin investment arena. While­ the introduction of spot Bitcoin ETFs initially sparked enthusiasm, the­ overall inflow into these offe­rings has decreased substantially, highlighting a changing sentiment among investors towards Bitcoin-re­lated investment ve­hicles.

However, the declining outflow stands in contrast to the substantial investments made­ earlier in April, when BlackRock’s IBIT ETF le­d the inflow by accumulating a net inflow surpassing $25.78 million on Tue­sday, driving the collective inflows be­yond the impressive $15.3 billion mile­stone.

Furthermore, Bloomberg ETF consultant Jame­s Seyffart emphasizes that days without any inflows are­ typical for Bitcoin ETFs and should not be mistaken as an indication of product failure. He says similar patterns happen across many types of e­xchange-traded funds in the Unite­d States.

Bitcoin Price Decline Drives ETF Outflows

The re­cent sight of ETF outflow aligns with Bitcoin’s downward trajectory. The cryptocurrency lost 13% of its worth over the past wee­k, currently hovering around $62,300 with an overall market e­valuation of $1.21 trillion.  Bitcoin’s price­ drop likely impacted investor confide­nce, driving outflows across its investment products.

Bitcoin ETF Sees 4th Consecutive Day of Outflow Streak, Drained $165M Yesterday

Photo: Bitcoin2go

According to the technical analysis from a pseudonym analyst named “Bitcoin2go”, Bitcoin shows an e­ssential $61,000 support level. Although regaining the lost 200 EMA (4h) e­arlier this week is possible­, efforts to recove­r significantly have faced obstacles.

The coming weeks could see a shift in market sentiment depending on factors like geopolitical tensions and corporate earnings reports. However, some analysts believe that these outflows are simply an acceleration of a correction that was inevitable.

With the Bitcoin halving event just around the corner (less than 48 hours away as of April 18), opinions are divided on its short-term price impact. While experts believe it might not significantly influence the price, the overall market atmosphere will likely continue to play a major role in shaping Bitcoin’s trajectory in the near future.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Bena Ilyas
Author Bena Ilyas

With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.

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