Bitcoin ETF outflows hit three-week high

U.S.-listed Bitcoin exchange-traded funds experienced their largest outflow in the past three weeks on January 8, following a brief dip of Bitcoin below $93k, causing widespread unease among investors.

Based on figures from SoSoValue, Bitcoin ETFs occupying the 12th position saw a withdrawal of approximately $582.9 million on Tuesday. This marked an end to a three-day run during which these funds received close to $2 billion due to inflows. The outflows on Tuesday were the largest since December 19, when these investment products experienced withdrawals totaling $680 million.

On January 8th, it was Fidelity’s FBTC fund that led the withdrawals, with a total of $258.69 million being taken out. In second place was ARK 21Shares’ ARKB fund, which experienced outflows amounting to $148.3 million. Interestingly, BlackRock’s IBIT fund, which had successfully countered the outflows from other Bitcoin ETFs the day before, also recorded outflows totaling $124.05 million on that particular day.

The withdrawal of funds from Valkyrie’s BRRR and Bitwise’s BITB contributed to the downward trend, amounting to $14.1 million and $11.26 million respectively. Smaller outflows were observed in Invesco Galaxy’s BTCO, Grayscale’s GBTC, and Franklin Templeton’s EZBC, with withdrawals of $9.38 million, $8.94 million, and $8.17 million each.

As a crypto investor, I noticed that the daily trading volume for my investment vehicles dipped significantly to $3.4 billion on January 8, which is quite lower compared to the $4.62 billion traded the day before.

On Tuesday, significant withdrawals were observed as the value of Bitcoin dipped below $93K due to economic uncertainties, suggesting that the Federal Reserve might take a stricter approach in response to their latest meeting minutes, implying ongoing inflation during the upcoming Trump presidency.

In simpler terms, the pessimistic updates about cryptocurrencies and the large withdrawals observed yesterday caused a 1.4% decrease in Bitcoin’s value, with it currently trading just over $94,000.

Previously, as per a report from crypto.news, analysts foresee a possible drop falling beneath the crucial $95,000 support threshold, which might lead to a continued decline in the value of Bitcoin, potentially reaching around $88,000.

Read More

2025-01-09 12:10