Bitcoin ETFs have first net outflows in weeks
Bitcoin ETFs ended their 10-day streak of net inflows yesterday. The $154 million in net outflows coincided with a 6% decline in bitcoin’s price for the day, as well as a flash crash in the BTC/USDT pair to $8,900 on BitMEX.
After $12 billion in net inflows since the SEC’s spot bitcoin ETF approvals on January 11th, with $4.8 billion in the prior two weeks alone, Monday’s activity appears to have spooked bitcoin investors, including ETF buyers.
US-listed ETFs have become major holders of bitcoin, with some $60 billion in combined funds under management.
As usual, Grayscale’s legacy fund GBTC led the outflows, siphoning $642.5 million out of the bitcoin ETF market. This dragged down $488.1 million in otherwise net positive flows of funds into bitcoin ETFs by BlackRock, Fidelity, Bitwise, WisdomTree, Ark, Invesco, Franklin, and VanEck.
Read more: Explained: How bitcoin market sell orders cause flash crashes
Although flash crashes like Monday’s $8,900 BTC/USDT print on BitMEX are a recurring problem in thinly-traded bitcoin markets outside the US, they typically remain localized anomalies with minor impact on bitcoin’s globally-weighted price.
Institutionally managed broad indices of bitcoin prices over the last 24 hours show more realistic low prices of $64,580.09 (BLX), $62,973.93 (TradingView), $62,961.74 (BitMEX), and $63,350.00 (SDX), respectively.
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