Bitcoin ETF outflows are back on the rise, potentially affecting the cryptocurrency’s performance.
Leading Outflows
Grayscale’s Spot Bitcoin ETF has historically been the primary contributor to outflows due to its high fees. However, Cathie Wood’s ARK Invest has also seen significant outflows from its ETF.
ARK Invest’s fund saw a record $87.5 million outflow on April 2nd, exceeding Grayscale’s $81.9 million outflow on the same day. This marked the second consecutive day of outflows for both funds.
Impact on Bitcoin Price
Spot Bitcoin ETFs have generally had a positive impact on the Bitcoin price since their approval in January. However, outflows from these funds have occasionally caused the BTC price to decline.
In January and March, outflows led to Bitcoin price drops. The current trend of outflows suggests a potential risk of further price declines.
Recovery and Outlook
The BTC price has recovered somewhat since inflows turned positive on Tuesday. However, sustained positive inflows are crucial to prevent further price drops towards the $60,000 level.
