Spot bitcoin (BTC) exchange-traded funds (ETFs) in the United States experienced their third day of outflows, collectively withdrawing $87 million (USD) on Jan. 22.
The first day of departures was January 16 with USD 52 million and the second day was January 18 with USD 126 million. It should be noted that these outflows experienced by ETFs do not come from all of them, but from just one. Precisely, they correspond to the Grayscale Bitcoin Trust (GBTC). As seen in the chart above, GBTC saw daily capital outflows, while the rest of the ETFs saw inflows or no outflows. This meant that in three of the seven days they have been trading, the net flow of this market has been negative. This scenario has contributed to the decline in bitcoin's price, as these funds function as vehicles that invest in the digital currency, allowing investors to gain exposure without directly owning the asset. The relationship between ETF outflows and bitcoin's falling price lies in supply and demand. When investors withdraw positions from bitcoin ETFs, they sell bitcoin, adding to the downward pressure on its price. In the span of seven days that it has been listed on the exchange, GBTC liquidated 82,000 bitcoins. This can be seen in the chart below, which shows the number of BTC in each day of the ETFs in the US market.
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Spot bitcoin (BTC) exchange-traded funds (ETFs) in the United States experienced their third day of outflows, collectively withdrawing $87 million (USD) on Jan. 22.
The first day of departures was January 16 with USD 52 million and the second day was January 18 with USD 126 million.
It should be noted that these outflows experienced by ETFs do not come from all of them, but from just one. Precisely, they correspond to the Grayscale Bitcoin Trust (GBTC).
As seen in the chart above, GBTC saw daily capital outflows, while the rest of the ETFs saw inflows or no outflows. This meant that in three of the seven days they have been trading, the net flow of this market has been negative.
This scenario has contributed to the decline in bitcoin's price, as these funds function as vehicles that invest in the digital currency, allowing investors to gain exposure without directly owning the asset.
The relationship between ETF outflows and bitcoin's falling price lies in supply and demand. When investors withdraw positions from bitcoin ETFs, they sell bitcoin, adding to the downward pressure on its price.
In the span of seven days that it has been listed on the exchange, GBTC liquidated 82,000 bitcoins. This can be seen in the chart below, which shows the number of BTC in each day of the ETFs in the US market.