Bitcoin ETFs break 'negative records'

The price of Bitcoin (BTC) saw a decline last week. As a result, US Bitcoin ETFs didn't have the best week either. There were significant outflows of funds. This depends Dates From BitMEX research.

Since the launch of Bitcoin ETFs, the funds have repeatedly broken records. Almost all positive features. Bitcoin funds also made history last week. Unfortunately not in a positive way. Bitcoin ETFs have recorded net outflows for five straight days.

Not the best week for Bitcoin ETFs

Total combined outflows of Bitcoin ETFs last week reached $888 million. These outflows were driven by significant inflows from Grayscale's GBTC ETF on Monday.

The five-day streak of outflows is a record for Bitcoin ETFs. In January, outflows were already recorded for four consecutive days.

In addition to the high outflows, which are almost entirely due to GBTC, inflows from other ETFs were also nothing to write home about. The most popular bitcoin ETF, Blackrock's IBIT, recorded its lowest daily inflow ever on Wednesday: $49.3 million. This was easily repeated on Friday with flows of just $18.9 million.

Fidelity's FBTC exchange-traded fund posted its lowest inflow since its launch on Thursday. Flows amounted to $2.9 million.

What causes outflow?

The outflows are not surprising. These are associated with a decline in the price of Bitcoin. But according to the ETF expert Eric Balchunas There is another reason. The Genesis investment fund sold its shares in GBTC and then used those proceeds to buy Bitcoin.

Despite the rise in outflows, trading volumes in ETFs were high. A little lower than in recent weeks to be exact. The total volume of all Bitcoin ETFs combined last week was about $22 billion. This brings the total volume to a total of $166 billion since the launch of the ETFs in January.

In general, outflow from ETFs is therefore not a cause for concern. The outflow is understandable due to Bitcoin's correction last week. Additionally, a significant portion of the outflow from GBTC can be attributed to the sale of Genesis.

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