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Spot Bitcoin ETFs Witness Persistent Negative Outflows, A Sign Of Fading Confidence?

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This has turned out to be a bleak week for Bitcoin spot trading funds (ETFs) as the historical products have seen consistent negative outflows in the past few days in light of recent price volatility.

Spot Bitcoin ETFs record outflows for 3 consecutive days

In a worrying development. Bitcoin ETFs It saw another day of negative outflows, recording multi-million-dollar losses after trading on Thursday, indicating lower adoption in both the retail and retail sectors. Institutional level.

Data London-based investment management firm Farside Investors shows the outflow represents 3 consecutive days of investor withdrawals. According to company reports, the products suffered cumulative outflows of more than $81.1 million on Thursday after seeing withdrawals of $30.6 million and $18.6 million on Wednesday and Tuesday, respectively.

Fidelity BTC ETF (FBTC) recorded the most daily outflows, at $33.8 million, followed by Ark Invest BTC ETF (ARKB), Blackrock’s BTC ETF (IBIT), and Bitwise BTC ETF (BITB), which posted losses of about $30.3 million, $10.8. $1 million and $6.2 million, respectively. Meanwhile, the rest of the funds saw little to no inflows.

The ongoing withdrawals demonstrate the growing unpredictability of the cryptocurrency market as investors reduce their exposure Bitcoin In the face of increasing volatility and macroeconomic concerns. It also shows declining confidence among investors in Bitcoin’s short-term potential despite strong optimism following the launch of the funds earlier this year.

It is worth noting that the withdrawals came after the funds recorded a massive net inflow of more than $235.2 million on Monday, which may be attributed to the general market recovery. However, since Bitcoin’s price fell on Tuesday, exchange-traded funds have seen significant outflows, indicating a cautious approach among investors.

This negative trend is observed in the broader spot ETF landscape Ethereum ETFs Significant outflows were also recorded alongside Bitcoin.

BTC whales continue to accumulate assets

Although spot Bitcoin ETFs have consistently posted huge losses in the past few days, reports have revealed that whales are still accumulating the crypto asset, indicating strong confidence about an imminent upward movement. The continuing trend suggests that top holders have been gaining Bitcoin In order to benefit from the long-term growth of the currency.

Negentropic, cryptocurrency expert and trader subscriber Development on the X platform (formerly Twitter). According to the expert, despite the unexpected increase in US inflation data, whales are still keen to buy Bitcoin.

He also noted that both long-term holders and whales continue to collect Bitcoin Short term owners It is starting to see a recovery as exchange volumes decline. As a result, Negentropic claims that “confidence in Bitcoin’s performance in the medium and long term is strong.”

BTC trades at $61,118 on 1D chart | Source: BTCUSDT Tradingview.com

Featured image from Unsplash, chart from Tradingview.com

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