The cryptocurrency market witnessed significant fluctuations this week, as evidenced by the performance of spot Bitcoin exchange-traded funds (ETFs) in the U.S. After enjoying a seven-day streak of net inflows, these ETFs saw a sharp reversal with substantial outflows recorded on Tuesday.
Data sourced from SoSoValue indicates a total net outflow of $79.09 million from the 12 spot Bitcoin ETFs. The majority of these outflows, amounting to $134.74 million, originated from Ark and 21Shares’ ARKB. On the other hand, some funds like BlackRock's IBIT and Fidelity's FBTC bucked the trend by registering net inflows of $42.98 million and $8.85 million, respectively. The total daily trading volume for these ETFs decreased to $1.4 billion from $1.76 billion the previous day, marking a downturn following a week of high activity. This shift underscores the link between ETF inflows/outflows and overall market liquidity.
The reversal in ETF flows coincides with Bitcoin’s recent price adjustments. After a rally where prices soared above $69,400, Bitcoin corrected to $67,038, a decline of 0.38% over 24 hours. This price movement mirrors the volatility observed in ETF inflows and outflows, highlighting the interconnection between ETF activity and broader market dynamics. While Bitcoin ETFs faced outflows, spot Ether ETFs reported a modest inflow of $11.94 million, entirely attributed to BlackRock’s ETHA. This divergence in flow patterns between Bitcoin and Ethereum ETFs may indicate varying investor sentiments and market conditions specific to each cryptocurrency.
The recent fluctuations in Bitcoin ETFs illustrate the dynamic nature of the cryptocurrency market. The $79 million outflow, following a substantial inflow streak, serves as a reminder of the market’s sensitivity to shifts in investor behavior and external economic factors.
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