Spot Bitcoin ETFs Bleed Another $58M, Mining Stocks Under Pressure

Zinger Key Points
  • The Valkyrie Bitcoin Miners ETF has dropped by about 28% this month, reflecting increased market volatility.
  • Recent geopolitical events and a risk-off investor sentiment have contributed to growing short interest in crypto-mining stocks.

Spot Bitcoin exchange-traded funds (ETFs) saw another net outflow day on Tuesday, totaling $58.03 million in a single day.

What Happened: According to data from SoSoValue, the Grayscale Bitcoin Trust GBTC experienced the largest outflow, with $79.38 million exiting the fund, contributing to its historical net outflow which now stands at a staggering $16.46 billion.

In contrast, BlackRock's iShares Bitcoin Trust IBIT saw the day's highest net inflow, approximately $25.78 million, suggesting a varied investor sentiment within the crypto ETF sphere.

James Seffart, a Bloomberg analyst, provides context to these numbers, noting the commonality of zero flows in the ETF market.

“On any given day, the vast majority of ETFs will report a flow number of ZERO—this is perfectly normal. With around 3,500 ETFs in the US, yesterday 2,903 had a flow of exactly zero,” explains Seyffart.

This perspective is crucial as it highlights that, despite significant outflows in certain ETFs, the occurrence of no flow is the norm rather than the exception within the broader ETF landscape.

Also Read: Peter Schiff Debates Natalie Brunell On Bitcoin: ‘If Natalie Were Smart, She Would Sell All’

Why It Matters: Amid these financial shifts, Bitcoin BTC/USD mining companies are facing heightened pressure due to the Bitcoin halving.

Companies such as Marathon Digital Holdings Inc. MARA, Riot Platforms Inc., RIOT and CleanSpark Inc. CLSK have seen their share prices decline consecutively over the past three days. In parallel, the Valkyrie Bitcoin Miners ETF has plummeted by roughly 28% this month alone.

This market volatility is compounded by increasing short interest in mining stocks and a broader risk-off sentiment triggered by recent geopolitical tensions following Iran's attacks on Israel.

What’s Next: The financial dynamics within the Bitcoin ecosystem and the mining sector’s resilience will be key topics at the upcoming Benzinga’s Future of Digital Assets event on Nov. 19.

The conference will provide a platform for leading experts and industry stakeholders to analyze these trends and their long-term implications on the digital assets market.

Read Next: Pizzas Or Power? These Bitcoin Halving Commercials Want To Whet Buyers’ Appetites

Image: Pixabay

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