Bitcoin ETF Outflows Continue For Second Straight Week

A new report reveals a decline in investor appetite for digital asset investment products, with outflows totaling $206 million for the second consecutive week.

What Happened: This trend coincides with a decrease in trading volumes for Exchange Traded Products (ETPs) to US$18 billion, according to a report from Coinshares.

The data suggests a potential shift in sentiment among ETP and ETF investors.

The lower volume percentage compared to total Bitcoin BTC/USD volumes, which are currently rising, might be a response to expectations of the FED maintaining high interest rates for longer than initially anticipated.

This could be impacting investor willingness to enter the market through these vehicles.

The negative sentiment seems primarily focused on U.S. ETFs, with $244 million in outflows.

Established ETFs are bearing the brunt of this trend, while newly launched ones continue to see inflows, albeit at a lower rate than previously.

Canada and Switzerland offer a contrasting picture, with inflows of $30 million and $8 million, respectively.

Also Read: Bitcoin In The Danger Zone: Is A 20% Price Crash Imminent?

Bitcoin Outflows Offset By Short Bitcoin Apathy

Bitcoin itself witnessed $192 million in outflows.

Interestingly, this wasn’t accompanied by a significant rise in short-selling activity, with short-Bitcoin products experiencing $0.3 million in outflows.

This suggests investors are hesitant to bet against Bitcoin despite the recent price decline.

Ethereum And Multi-Asset Products Show Divergent Trends

Ethereum ETH/USD followed a different path, experiencing its sixth consecutive week of outflows, totaling $34 million.

However, multi-asset investment products saw a more positive trend, with inflows of $9 million last week.

Additionally, Litecoin LTC/USD and Chainlink LINK/USD defied the overall trend with inflows of $3.2 million and $1.7 million, respectively.

Blockchain Equities Remain Wary Of Halving Impact

The report also highlights the ongoing apprehension surrounding the upcoming Bitcoin halving.

Blockchain equities faced their eleventh consecutive week of outflows, totaling $9 million.

This reflects investor concerns about the potential impact of the halving on mining company profitability.

Meanwhile, according to SoSo value, Bitcoin spot ETFs had a total net inflow of $59.558 million on Friday, the first net inflow after net outflows in the past 5 days.

Grayscale ETF GBTC had a net outflow of $45.8246 million, Fidelity ETF FBTC had a net inflow of $54.7707 million and BlackRock ETF IBIT had a net inflow of $29.2758 million.

What’s Next: With the cryptocurrency market experiencing a period of flux, Benzinga’s upcoming Future of Digital Assets event on Nov. 19 promises to be a valuable platform for investors and enthusiasts alike.

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