Outflows sharply contrast with last week’s $3.3 billion in Bitcoin ETF inflows, where IBIT captured over 60 percent
The value of Bitcoin has pulled back further from the significant psychological threshold of $100,000, as investors took profits following the cryptocurrency’s gains after the U.S. elections. As of 5:55 a.m. ET, Bitcoin, the largest crypto by market cap, was trading down 6.2 percent at $92,446.38, with its current value at $92,410.06, according to data from CoinGecko. In conjunction with Bitcoin’s price decline, U.S. Bitcoin exchange-traded funds (ETFs) experienced notable outflows on Monday as Bitcoin retreated below the $93,000 mark. The eleven spot Bitcoin ETFs collectively recorded net outflows of $435 million. Notably, only two funds, BlackRock’s iShares Bitcoin Trust (IBIT) and Grayscale’s Bitcoin Mini Trust (BTC), attracted inflows during this period. Specifically, data from Farside Investors indicates that IBIT received approximately $268 million in net inflows, while BTC gained $400,000.
Significant withdrawals
Bitwise’s Bitcoin ETF (BITB) and Grayscale’s Bitcoin Trust (GBTC) experienced considerable withdrawals. BITB saw its largest outflow ever at $280 million, and GBTC recorded its most significant daily redemption in three months, totaling $158 million. Fidelity’s Wise Origin Bitcoin Fund (FBTC) and ARK Invest’s Bitcoin ETF (ARKB) also faced outflows of $135 million and $111 million, respectively, while Invesco and Valkyrie’s funds collectively lost $19 million.
Contrast with previous week
These notable outflows represent a sharp contrast to the previous week’s performance, during which U.S. Bitcoin ETFs attracted $3.3 billion, with IBIT capturing over 60 percent of total inflows. The recent downturn occurred as the broader crypto market shifted to a bearish trend, with Bitcoin’s quest for the $100,000 mark hampered by its decline below $93,000.
Read more: Bitcoin nears $100,000 over Trump crypto optimism
Declines across cryptocurrencies
Other cryptocurrencies also experienced declines. Ether, the second-largest digital asset, dropped 4.2 percent to $3,346.86, while Solana’s SOL token saw a larger decline of 8.9 percent, trading at $231.88. The overall market capitalization for cryptocurrencies decreased by $182 billion, bringing it down to $3.35 trillion.
Surge since elections
Despite this decrease on Tuesday, Bitcoin has surged over 30 percent since the U.S. presidential election on November 5, which resulted in the victory of former President Donald Trump. Although Trump has yet to be inaugurated, the excitement surrounding his pro-crypto policy platform prior to the election has reignited interest in digital currencies.
Further optimism in the crypto markets is fueled by the impending resignation of U.S. Securities and Exchange Commission Chair Gary Gensler on January 20—the same day Trump will be inaugurated. Trump has pledged to appoint a new leader for the agency.