The US-based Bitcoin ETF (exchange trade funds) has been on a negative streak of capital outflows over the past few weeks, reflecting a decline in appetite and worsening sentiment among investors. However, the latest daily performance of these crypto-based financial products suggests that new demand may be rising among investors.
Bitcoin ETF closes Positive Week with a net inflow of $83 million
According to the latest market data, US Bitcoin ETF recorded a daily net inflow of $83.09 million on Friday, March 21st. This fresh capital inflow was marked for six consecutive days of net net inflows of crypto products.
On Friday, only two of the Bitcoin ETFs witnessed investor activity. BlackRock has added the highest amount ($104.99 million) to its exchange-selling fund Ishares Bitcoin Trust (The The The The Bate). Meanwhile, Grayscale Bitcoin Trust (GBTC) has posted a daily online leak of $21.9 million to end the week.
Nevertheless, this $83.09 million performance has resulted in Bitcoin ETFS’ weekly record becoming an astounding weekly net inflow of $744.35 million. Interestingly, last week’s record ended the fifth consecutive week of total net outflow from funds trading on the exchange.
Source: SoSoValue
Data from SOSOValue shows that the US Bitcoin ETF market has witnessed a total withdrawal of $53.9 billion over these five-week negative outflows. Specifically, crypto-based financial products witnessed a total net escaping of over $1.14 billion on February 25th.
The magnitude of the outflow seen by the Bitcoin ETF is linked to the uncertain climate of US financial markets. Since US President Donald Trump took office, the market has been plagued by fear of the world trade war, interest rate decisions and more.
Bitcoin prices that do not respond to ETF inflows
Since their launch, there has been debate about the impact that US Bitcoin ETFS performance will have on the price of its flagship cryptocurrency. As seen in the recent consecutive week of net outflows, Bitcoin prices tend to struggle every time ETF investors leave the market.
However, despite the fresh demand for US Bitcoin ETFs, the best cryptocurrencies appear to remain in the consolidated range. However, sustained demand for its exchange sales funds may be a positive catalyst for Bitcoin prices to resume its upward trend.
At the time of writing, BTC prices have hovered around the $84,000 mark, with no significant changes in the last 24 hours. According to Coingecko data, market leaders have recorded few notable movements over the past week.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
ShutterStock featured images, TradingView charts
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