Bitcoin’s recent unimpressive price action is playing out in the minds of institutional investors, with recent data highlighting their bearish sentiment. This has led to a wave of huge outflow by Bitcoin investment productswhich could negatively impact the flagship crypto.
Bitcoin investment products record outflows of $284 million
CoinShares unveiled in a blog post that Bitcoin investment funds recorded an outflow of $284 million last week. Most of this outflow would come from the US Spot Bitcoin ETFswho saw outflow of $156 million last week. CoinShares noted that last week was the first time these funds recorded such a measurable outflow.
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These US Spot Bitcoin ETFs indeed had a week to forget last week, just like BlackRock’s iShares Bitcoin Trust (IBIT) recorded the first day of outflows since launch, with nearly $37 million exiting the fund.
CoinShares suggested that the size of the outflow was likely due to Bitcoin falling below $62,000, which they say is the average purchase price of these ETFs since launch. Therefore, they claim that Bitcoin’s decline may have triggered automatic sell orders.
Previously, institutional investors had already shown mixed feelings towards these funds thanks to Bitcoin’s recent price action. As such, it makes sense that Bitcoin fell below $60,000 panic selling instead of holding their positions.
Despite this development, CoinShares noted that the Spot Bitcoin and Ethereum ETFs are on the rise Hong-Kong which launched last week were a bright spot, recording inflows of $307 million in their first week of trading. The launch of these funds could prove to be timely, with Bitcoin need a catalyst to continue the upward trend.
Interestingly, CoinShares revealed that Bitcoin was the only crypto asset to record an outflow. For its part, Ethereum broke its seven-week streak of record outflows, with $30 million flowing into Ethereum investment products. Other altcoins such as AvalancheCardano and Polkadot also saw an influx.
Still don’t understand Bitcoin ETFs clearly
Of GBTC in grayscale As we recorded the first day of net inflows last week, there was a sense that such a development could lead to a change in the outflow who registered the Spot Bitcoin ETFs. However, that has not been the case. These funds will be released on May 7 included a net outflow of $15.7 million.
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GBTC was again the main culprit, with the fund seeing a net outflow of $28.6 million. This outflow still has an influence Bitcoin’s price negative, given the amount of selling pressure it piles on the flagship crypto.
At the time of writing, Bitcoin is trading around $62,300, down more than 2% in the past 24 hours. facts from CoinMarketCap.
BTC price at $62,300 | Source: BTCUSD on Tradingview.com
Featured image from The Independent, chart from Tradingview.com
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