Spot Bitcoin ETFs Reverse Course, Losing $438 Million as BTC Dips Below $92,000

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As a seasoned researcher with years of experience in the ever-evolving world of cryptocurrencies, I find myself intrigued by this dynamic dance between inflows and outflows in the Bitcoin ETF market. The sheer volume of transactions we’re witnessing is reminiscent of a bustling stock exchange floor, albeit with a distinct digital twist.

The largest outgoings, totaling approximately $280 million, were observed in Bitwise’s Bitcoin ETF (BITB), as investors opted to withdraw their funds. This was followed by Grayscale’s Bitcoin Trust (GBTC) with $158 million in redemptions, and both Fidelity’s Wise Origin Bitcoin Fund (FBTC) and the Bitcoin ETFs from Ark and 21Shares (ARKB) experienced outflows of $135 million and $111 million respectively.

On Monday, there were substantial losses observed in funds like Invesco, Valkyrie, and VanEck, resulting in a total net withdrawal of approximately $19 million. However, BlackRock’s iShares Bitcoin Trust (IBIT) saw significant gains, attracting inflows worth $268 million, representing about 61% of the day’s positive investments. Interestingly, Grayscale’s Mini Bitcoin Trust also experienced a slight increase in investments, amounting to approximately $420,000.

On Monday, the combined trading volume for Bitcoin ETFs amounted to around $5.6 billion, which is slightly more than last Friday’s trade of $5.4 billion. Currently, their total inflows add up to $30.4 billion, equating to about 5.4% of Bitcoin’s entire market value.

Bitcoin Price Stalls Below $100,000

Bitcoin’s attempt to breach the psychological $100,000 level faltered last week, falling to $91,881 at the time of reporting, according to Brave New Coin’s Bitcoin Liquid Index. The cryptocurrency’s current price marks a 6.2% decline in the past 24 hours and a significant retracement from its recent peak of nearly $100,000.

The significant selling from long-term investors has fueled pessimistic feelings towards Bitcoin, with approximately 461,000 BTC sold since it reached a peak of over $99,000. This massive selling, accompanied by liquidations totaling more than $1 billion in the past two days, has sparked worries about a possible fall below $90,000. Technical analysts predict that Bitcoin could find support around $85,000 before making another surge upward.

Record Weekly Inflows Highlight Market Dynamics

Regardless of Monday’s disappointment, the overall trend for Bitcoin ETFs has been favorable. In the past week alone, U.S. Bitcoin ETFs witnessed extraordinary inflows amounting to $3.3 billion. Among these, BlackRock’s IBIT was a notable leader, garnering approximately 60% of the weekly total inflow.

In a significant development, MicroStrategy – a prominent corporate investor in Bitcoin – made waves by purchasing an unprecedented 55,500 BTC for around $5.4 billion, boosting market activity. This acquisition cements the company’s role as a dominant institutional player within the crypto sector, now holding approximately 386,700 BTC in total.

Altcoin Performance and Ethereum ETF Trends

On Monday, Bitcoin ETFs experienced a tough day, while Ethereum ETFs reported an inflow of $2.8 million. The trading volume for Ethereum ETFs soared to a massive $711.2 million, compared to last Friday’s $373.9 million. Additionally, other cryptocurrencies like Solana and XRP garnered attention from investors, with Solana attracting inflows worth $16 million, slightly surpassing Ethereum’s inflow of $2.8 million.

Investors continue to closely watch key economic indicators such as the Federal Reserve’s policies and inflation statistics. These elements can influence the future direction of not only Bitcoin but also the entire cryptocurrency sector over the next few weeks.

 

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2024-11-26 16:19