Bitcoin exchange-traded funds (ETFs) in the US saw a significant shift last week, ending a six-week winning streak. Let’s break down what happened.
A Week of Outflows
Recently, investment in US Bitcoin ETFs slowed down, mirroring a general cooling-off in the crypto market. Global trade issues might be making investors a bit more cautious. The result? Over $157 million flowed out of these ETFs last week. This suggests investors are less enthusiastic about crypto investments right now.
BlackRock’s IBIT Leads the Retreat
The biggest hit was taken by BlackRock’s IBIT, the largest Bitcoin ETF. On Friday alone, it saw a massive $430.82 million outflow, ending a 34-day run of positive inflows (though that included three days with no net change). ARK 21Shares Bitcoin ETF (ARKB) also saw substantial outflows, losing $120.14 million on Friday. A few other ETFs, like Bitwise, Grayscale, and Fidelity’s offerings, also saw smaller outflows.
These two days of significant outflows pushed the week’s overall performance into negative territory.
Bitcoin Price and ETF Performance: A Connection
The price of Bitcoin and the performance of US Bitcoin ETFs are clearly linked. As Bitcoin’s price moved away from its recent high of around $111,871, investment in ETFs slowed. At the time of writing, Bitcoin is trading around $104,424, showing a slight increase over the last 24 hours but a nearly 3% drop over the past week.
