Bitcoin ETFs in the U.S. Experience Largest Outflows since November 20th
U.S. spot bitcoin ETFs experienced significant net outflows on Monday, reaching $357.6 million, marking the largest daily redemption total in nearly two weeks since Nov. 20. This movement coincided with a drop in bitcoin prices to as low as $85,100. The market was under pressure, evident by the outflows from spot bitcoin ETFs.
Notably, Monday’s performance has been historically weak for bitcoin, with Velo data indicating it as the third-worst performing weekday in the past year, following Thursday and Friday trends. This pattern of weakness on Mondays was consistent with the recent downturn in bitcoin prices.
Attention has been drawn to the U.S. spot ETF cost basis, representing the average entry price of bitcoin held by spot ETFs. Glassnode data revealed the aggregate U.S. bitcoin ETF cost basis hovering around $83,000, a level that served as support during previous market lows on Nov. 21 and Dec. 1. Investors are closely watching this region for potential price support.
Breaking down the redemptions by fund, Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the way with $230.1 million in outflows. Bitwise’s BITB and ARK 21Shares’ ARKB also experienced net outflows of $44.3 million and $34.3 million, respectively. On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT) reported no net flows during this period.
The market sentiment around bitcoin remains uncertain as investors navigate through heightened volatility and market fluctuations. This recent uptick in outflows from U.S. spot bitcoin ETFs signals a bearish sentiment among some market participants, potentially indicating a shift in market dynamics. It will be crucial to monitor how bitcoin prices respond to these outflows and whether key support levels can hold in the face of increasing selling pressure.
