Bitcoin ETF Inflow Streak Breaks With Nearly $80 Million Outflows In Sudden Reversal
24 Outubro 2024 - 7:00AM
NEWSBTC
The recent increase in the appeal of spot Bitcoin exchange-traded
funds (ETFs) in the United States has temporarily ceased. Related
Reading: 5 Million Strong: Active Ethereum Wallets Drive Strong
Momentum On Tuesday, these funds underwent a reversal, resulting in
net outflows of $79.01 million, following an extraordinary
seven-day streak of positive inflows. Farside Investors are the
source of this data, a company that specializes in the analysis of
ETF flows. A Brief Obstacle The $79 million outflow represents a
significant shift in sentiment among investors who had previously
demonstrated a strong interest in Bitcoin ETFs. Over the span of
two days last week, the market attracted around $1 billion in
inflows, implying a robust demand for these financial products. The
main cause of this negative change was Ark and 21Shared’s ARKB,
which resulted in a substantial $134.7 million outflow. BlackRock’s
IBIT, the best-performing bitcoin ETF by net assets, drew $43
million. Fidelity’s FBTC and VanEck’s HODL, which received $8.8
million and $3.8 million, respectively, also helped. There were no
new flows on the remaining eight funds, including Grayscаle’s GBTC,
during the day. Nevertheless, Bitcoin ETFs could bring in more than
$21 billion to date. This number clearly signifies the rising use
of Bitcoin as a new asset class and it is only going to see more
hedge funds take larger positions. US-traded spot Bitcoin ETFs have
also seen significant interest from institutional investors, with
20% of the market owned by them as of October 22. Institutional
ownership of U.S. #Bitcoin Spot ETFs is around 20%, with asset
managers holding 193K BTC (per Form 13F filings).
pic.twitter.com/9YTOEH3G5w — Ki Young Ju (@ki_young_ju) October 22,
2024 Institutional Demand Is Still Strong Regardless, while the
latest ETF flow swings have been significant in themselves, they
can not distract from what is an ongoing push towards institutional
Bitcoin adoption. Among the main companies who have made large
investments in these funds are Goldman Sachs and Millennium
Management. The SEC’s approval of options trading on 11 Bitcoin
ETFs will help investors manage their Bitcoin exposure, boosting
interest. Through more efficient position hedging made possible by
options trading, investors can help to steady the market and lower
volatility over time. Analysts argue that this would draw more
institutional money to the industry, therefore supporting Bitcoin’s
reputation as a credible investment tool. Bitcoin ETF: Looking
Ahead Although outflows may cause concern, many analysts are
positive about Bitcoin ETFs. Options trading’s SEC approval is a
turning point that could improve market efficiency and liquidity.
More institutional players coming into the space are likely to
change the dynamics. The current pause in inflows could be a
temporary phenomenon only; investors are repositioning their
strategies given the shift in market conditions. Related Reading:
Shiba Inu Soars: Analyst Predicts 71% Rally In ‘Meme Super Cycle’ –
Details The outlook for spot Bitcoin ETFs, looking into the long
term, appears quite positive with the current uptick in adoption
from the institutional space and trading of Bitcoin at or near
three-month highs. The recent outflows from spot Bitcoin ETFs may
indicate a temporary setback; however, the prevailing trend of
heightened institutional interest and regulatory support indicates
that this asset class is here to stay. Investors will be intently
monitoring the rapid evolution of this market for any new
developments. Featured image from The Rio Times, chart from
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