Bitcoin ETF Experiences $79M Outflow, Halting a Two-Week Bullish Trend Amidst BTC Price Stagnation
Institutional investors in Bitcoin are currently hesitant as the BTC price struggles to break through resistance levels.
Investors are pausing their recent buying activity as BTC price stabilizes.
According to data from various sources, including UK-based investment firm Farside Investors, inflows to US spot Bitcoin exchange-traded funds (ETFs) have turned negative for the first time in two weeks.
Declining Interest in Bitcoin ETFs and BTC Price
The decline in BTC price is impacting institutional interest, even as the BTC/USD price remains within 10% of its all-time highs.
On October 22, US ETF inflows reported a significant decrease, losing $79.1 million in total for the day.
This negative total was primarily driven by the ARK 21Shares Bitcoin ETF, which experienced outflows of $134 million. Other products either had inflows or showed no activity according to Farside data.
BlackRock’s iShares Bitcoin ETF (IBIT), the largest by assets under management, recorded inflows of $43 million, which is considerably less than the previous day’s influx of $329 million.
Commentator WhalePanda noted the price was stagnating around $67,000 while discussing the flow trends.
This marks the first instance of negative net flows for US ETFs since October 10, when they recorded a loss of $81.1 million.
ETFs: A Major Element in the Crypto Landscape
Recent months have seen a revival in ETF interest, reflecting their importance in the market.
Data shared on X by Ki Young Ju, co-founder of the on-chain analytics platform CryptoQuant, indicated that as of October 18, institutional ownership of ETFs has approached 20%.
Ju emphasized that, “Thanks to spot ETFs, 1,179 institutions have joined Bitcoin’s cap table this year.”
Additionally, European investors contributed over $100 million toward US ETF products this year.
Notably, net inflows into US Bitcoin ETFs recently surpassed $20 billion, with total assets under management reaching a record high of $65 billion.
New research published in collaboration with Coinbase highlighted the success of ETFs as a significant development in the market, stating that US-based Bitcoin ETFs had over $5 billion in net inflows during Q3, indicating strong appetite among institutional investors.
“These ETFs have become key drivers of liquidity and accessibility, making it easier for a broader range of market participants to gain exposure to Bitcoin without the complexities of direct ownership.”
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