Bitcoin ETF Outflows Are Ramping Up Again, What Does This Mean For BTC Price?
03 Abril 2024 - 9:00AM
NEWSBTC
Bitcoin ETF outflows are on the rise once again after a change in
the tide last week. These outflows, given the ETFs’ correlation
with the Bitcoin price, have a substantial impact on how well the
cryptocurrency performs over time. So, as outflows are ramping up,
will it trigger a crash in the BTC price? ARK Invest And Grayscale
Lead Outflows While Grayscale’s Spot Bitcoin ETF has been the
natural culprit for ETF outflows due to its high fees, another fund
has joined the trend in a surprising turn of events. Cathie Wood’s
ARK Invest saw a substantial outflow from its ETF, leading to a new
record for the investment firm. Related Reading: Solana Whales Are
Making Moves – Here’s The Direction They’re Headed In The Ark
21Shares Fund (ARKB) saw a record $87.5 million leave its fund on
Tuesday, April 2. Interestingly, the fund’s outflows were even
higher than that of Grayscale, which saw around $81.9 million in
outflows in the same day. For both these funds, it marked the
second consecutive day of outflows, although it was more concerning
on the part of the Ark 21Shares Fund. This is because Grayscale saw
a decline in outflows between Monday and Tuesday, going from $302.6
million to $81.9 million. Whereas the ARK Invest fund saw outflows
go from $0.3 million on Monday to $87.5 million on Tuesday,
resulting in a 29,000% increase in outflows in a single day. Only
these two funds have experienced outflows this week though, as the
other ETFs continue to see upside. While Monday’s net flows ended
up being negative to the tune of $85.7 million, Tuesday’s numbers
looked better with positive net flows of $40.3 million. How Will
This Affect Bitcoin Price? Since the Spot Bitcoin ETFs were
approved in January, their effect on the Bitcoin price has been
positive overall. However, there have been points where outflows
from the funds have affected the BTC price, causing it to crash.
Related Reading: Dogecoin Hits Major Roadblock As Whales Go On
Massive Selling Spree A few instances of this is back in January, a
week after the ETFs were first approved. Outflows had plagued the
funds and the Bitcoin price had declined as a result. Then again,
in March, when outflows turned negative between March 18 and March
22 and the Bitcoin price crashed from $73,000 to $61,000. Given
BTC’s performance during periods where outflows prevail in Spot
ETFs, this current trend does not bode well for the price. There
has been a recovery in the BTC price after inflows turned positive
on Tuesday. But unless they stay positive through the end of the
week, the BTC price could see further crashes toward the $60,000
level. BTC price recovers above $66,000 | Source: BTCUSD on
Tradingview.com Featured image from Business News This Week, chart
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