Bitcoin ETF $79M outflow ends 2-week bull run amid ‘sideways’ BTC price
2024.10.23 04:01
Bitcoin (BTC) institutional investors have paused their latest buying spree as BTC price action consolidates.
Inflows to the US spot Bitcoin exchange-traded funds (ETFs) turned net negative for the first time in two weeks, data from sources including UK-based investment firm Farside Investors shows.
Bitcoin ETF interest cools with BTC price
BTC price action is already taking its toll on institutional demand — even as BTC/USD hovers within 10% of all-time highs.
US ETF inflows flipped net negative on Oct. 22, on aggregate down $79.1 million for the day.
The “red” daily tally came courtesy of one ETF product, the ARK 21Shares Bitcoin ETF, which experienced outflows of $134 million. The remaining products saw either inflows or no activity, Farside shows.
The largest ETF by assets under management, BlackRock’s iShares Bitcoin ETF (IBIT), managed $43 million of inflows — still considerably lower than the $329 million the day prior.
“Price just going sideways around $67k,” popular commentator WhalePanda wrote in part of ongoing coverage of the flows on X.
US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors
The last time that the US ETFs ended a day with net negative flows was on Oct. 10, when they shed a comparative $81.1 million.
ETFs one of crypto markets’ “biggest stories”
As Cointelegraph reported, the ETFs have enjoyed a broad renaissance over the past month.
Related: Bitcoin price needs new high above $69K ‘mid week’ as US dollar surges
Data uploaded to X this week by Ki Young Ju, co-founder of onchain analytics platform CryptoQuant, reveals that as of Oct. 18, institutional ETF ownership is now at around 20%.
“Thanks to spot ETFs, 1,179 institutions have joined Bitcoin’s cap table this year,” Ki added.
US spot Bitcoin ETF institutional ownership. Source: Ki Young Ju/X
In addition to domestic demand, European investors have allocated over $100 million to the US products year-to-date.
Last week, net inflows crossed the $20 billion milestone for the first time, with total assets under management hitting a record $65 billion.
In recent research published in conjunction with largest US exchange Coinbase, onchain analytics firm Glassnode called the ETFs’ success “one of the biggest stories in the market.”
“In Q3, US-based Bitcoin ETFs saw over $5 billion in net inflows, underscoring the strong demand for direct exposure to Bitcoin among institutional investors,” it summarized.
“These ETFs have become key drivers of liquidity and accessibility, making it easier for a broader range of market participants to gain exposure to Bitcoin without the complexities of direct ownership.”
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