Institutional investors are turning more bearish as Bitcoin’s price struggles with lackluster movement. This is causing many funds to leave investments in Bitcoin.
On their blog, CoinShares said $284 million was taken out of BTC investing funds last week. The funds were mostly from US Spot BTC ETFs, where $156 million was taken out. CoinShares said this was the first time they had seen outflows this big.
On the first day it was open, nearly $37 million left BlackRock’s iShares BTC Trust (IBIT). It wasn’t the only one.
CoinShares says that one big reason for the losses was Bitcoin dropping below $62,000, the average price at which these ETFs have been bought since they began. Auto-sell orders may have been set off as Bitcoin’s value dropped.
Bitcoin Buyers’ Confidence Wanes Amid Price Volatility
The recent drop in Bitcoin’s price has made big buyers less sure of their choices. When BTC went over $60,000, there was a rush to sell.
Even with these issues, CoinShares gave people in Hong Kong hope when they launched Spot BTC and Ethereum ETFs. These funds got $307 million in new deposits during their first trade week. The time of the launches of these funds could help BTC keep going up.
Interestingly, while funds left the BTC market, $30 million came into the Ethereum investment market, ending a seven-week trend of funds leaving the Ethereum market. Many funds also went into other altcoins, like Avalanche, Cardano, and Polkadot.
Last week, Grayscale’s GBTC had its first day of net gains. However, Spot BTC ETFs kept losing funds. On May 7, $15.7 million had been taken out of these funds. With a net loss of $28.6 million, GBTC had the most.
According to data from CoinMarketCap, these steady withdrawals are keeping the price of Bitcoin down. It is now worth about $62,300, more than 2% less than 24 hours ago.
