Institutions have continued to withdraw their interest as the ongoing crypto market downturn continues to push leading cryptocurrencies, especially Bitcoin, deeper into the red territory.
Amid the prolonged market volatility, Bitcoin ETFs have now recorded steady outflows for four days straight, according to data provided by SoSoValue.
Bitcoin funds see $509.70 million wipeout
Amid the steady outflows seen, the U.S. spot Bitcoin ETFs have recorded a total net outflow of $509.70 million as of Jan. 30. This marks the fourth straight day of capital withdrawals seen across the Bitcoin funds.
The outflows seen during their last trading session have coincided with the broad market sell-off pressure that has pushed Bitcoin to trading around $83,910 at the time.
Nonetheless, it is important to note that the cumulative net inflows across all Bitcoin ETFs remain substantial at $55.01 billion. This suggests that long-term institutional participation has not completely exited the market.
While this has greatly affected the short-term sentiment within the sector, the steady withdrawals seen in recent days have caused the total net assets across the U.S. Bitcoin spot ETFs to fall by a notable 6.38% to $106.96 billion.
$509 million ETF withdrawal driven by BlackRock alone
Nonetheless, it is important to note that BlackRock’s IBIT has single-handedly driven the massive capital withdrawals seen on that day as it recorded about 6,310 BTC worth $528.30 million in outflows.
While this shows that the fund was the only contributor to the day’s negative flow, other Bitcoin funds noted little to no net inflows on the same day.
While Fidelity's FBTC added about $7.30 million in inflows on that day and ARK & 21Shares’ ARKB also attracted $8.34 million, the capital injected by these funds was too weak to offset the massive withdrawals pulled by BlackRock.
Caroline Amosun
Tomiwabold Olajide
Godfrey Benjamin