Bitcoin ETF Sees Largest Net Outflow of $83M Since Inception, Signaling Potential Bottom for Bitcoin

Bitcoin ETF Outflows Continue Amid Market Uncertainty

Grayscale GBTC Sees Decreased Outflow

Spot Bitcoin ETFs in the U.S. continue to perform poorly, with a net outflow of $83.6 million on the week’s last trading day. Grayscale GBTC saw an outflow of $82.4 million, indicating the lack of interest among institutional investors in Bitcoin ETF presently. This trend is attributed to monthly options expiry and hotter PCE inflation, coupled with Bitcoin’s recent poor performance.

DTCC Announcement Sparks Panic

The financial industry experienced panic following DTCC’s update on collateral values for certain securities, particularly ETFs with Bitcoin or other cryptocurrencies as assets. Bloomberg analyst James Seyffart and Custodia Bank CEO Caitlin Long believe that the announcement will have a positive impact on the crypto market.

Spot Bitcoin ETFs Experience Outflows

After a brief period of recovery earlier in the week, spot Bitcoin ETFs witnessed a total net outflow of $83.6 million. The 11 listed spot Bitcoin ETFs saw a decrease in volumes and buying activity, with only Ark 21Shares Bitcoin ETF (ARKB) experiencing an inflow of $5.4 million.

Fidelity Bitcoin ETF (FBTC) and Bitwise Bitcoin ETF (BITB) saw outflows of $2.8 million and $3.8 million, respectively. BlackRock iShares Bitcoin ETF (IBIT) and other spot Bitcoin ETFs recorded zero flows, raising concerns among investors.

Bitcoin Price and Market Outlook

Bitcoin’s price fell over 2% in the last 24 hours, currently trading under $63,000. BitMEX co-founder Arthur Hayes predicts a market recovery next week, citing tax receipts and the US Treasury Dept’s upcoming refunding announcement. Despite market uncertainties, there is optimism for Bitcoin’s potential to bounce back.

Republic First Bank became the first regional bank this year to face challenges due to higher interest rates set by the U.S. Federal Reserve. The market continues to navigate through volatile conditions, with investors closely monitoring developments.

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