Bitcoin's 8% Drop Past Week Led To $83M Net Outflows In Spot Bitcoin ETFs

Zinger Key Points
  • U.S. Spot Bitcoin ETFs report an $83 million net outflow in the past week, as prices dropped in the same period.
  • Analysis highlights that the outflow could be a sign of increased profit-taking after two quarters of gains.

For the third time since their January launch, spot Bitcoin ETFs witnessed net outflows last week as Bitcoin BTC/USD prices declined 8% last week.

What Happened: BitMEX Research data, as reported by Blockworks, indicates an $83 million drop in assets in the 11-fund category from April 8 to April 12. This is a stark contrast to the net inflows of $485 million recorded the previous week.

Since their launch on January 11, spot Bitcoin ETFs have collectively attracted $12.5 billion in positive flows. However, the Grayscale Bitcoin Trust ETF GBTC has been the only U.S. BTC fund to consistently see outflows, with $767 million exiting last week.

Despite attempts by asset-gathering leaders such as BlackRock's iShares Bitcoin Trust IBIT and the Fidelity Wise Origin Bitcoin Fund FBTC to counterbalance the GBTC’s negative net flows, they managed to attract only $487 million and $90 million, respectively.

The Bitcoin fund segment had only two weeks of net outflows before last week, losing $417 million in assets from Jan. 22 to Jan. 26 and $888 million from March 18 to March 22. The most significant net inflows in a week for the category peaked at $2.5 billion from March 11 to March 15.

Read Next: Bitcoin’s Next Move: ‘More Likely’ To Hit Up To 75K On Short Liquidations, Analyst Says

Why It Matters: The recent ETF outflows coincide with a week where Bitcoin's price fell 8% in the last week and by around 5% from Monday to Friday. Analysts suggest these outflows from U.S. spot Bitcoin ETFs indicate “increased profit-taking and investor caution,” following the strong uptrend over the past two quarters.

Coinglass data indicates a growth of 2.6% in its open interest to $33.1 billion alongside a 3% surge in Bitcoin prices in the past 24 hours.

Notably, Bitcoin liquidations in the past 24 hours have seen almost as many short liquidations ($118 million) as long liquidations ($126 million).

What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

Read Next: Peter Schiff Predicts Bitcoin ETFs Will Lead To Its ‘Biggest Crash Ever’

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.

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