The rising selling pressure seen across the crypto market has also extended to the U.S. spot Bitcoin ETF ecosystem, as they have continued to see poor performances over the past days.
Amid the broad market slowdown, the Bitcoin funds have not injected any fresh capital recently. As such, they recorded a fourth straight day of net outflows on January 22.
Bitcoin ETFs log $32.11 million in latest outflow
According to data provided by SosoValue, the total daily ETF flows fell by $32.11 million during their last trading session, marking an extension of steady outflows seen over the past four days.
This negative performance extends a short-term bearish trend seen across the market and other ETF products, although the broader ETF market still holds significant cumulative gains.
Despite the daily outflow, the cumulative total net inflow across U.S. Bitcoin spot ETFs remains strong at $56.60 billion. This suggests that the four-day outflow streak may have been triggered by a short-term recession, implying that long-term investor interest has not disappeared.
BTC ETFs retain impressive trading volume
Despite the poor performances seen across the Bitcoin funds, the data further showed that the total value traded on Thursday alone reached $3.30 billion, suggesting active participation from investors even amid the cautious sentiments.
Alongside the consistent ETF withdrawals, Bitcoin has remained in the red zone, showing negative price movements over the past days, as investor confidence appears to be weakening.
While Bitcoin has failed to retain the bullish momentum it started the year with, it has lost the crucial $90,000 level and is now hovering around $88,785 as of writing time. The leading cryptocurrency has slumped by 0.89% over the last day.
BlackRock leads with highest daily ETF withdrawal
While BlackRock has remained a key player in the Bitcoin ETF market, the outflow seen on January 22 was driven majorly by its IBIT fund, which solely recorded about $22.35 million in net outflows on that day.
Fidelity, on the other hand, supported BlackRock in the heavy withdrawals, as it saw $9.76 million exit its fund on the same day. Thus, most other spot Bitcoin ETFs, including Grayscale, Bitwise, and Ark & 21Shares, saw flat flows for the day, neither adding nor losing capital.
Caroline Amosun
Alex Dovbnya
Denys Serhiichuk
Gamza Khanzadaev