
Bitcoin exchange-traded funds attract $301 million in net inflows
Spot Bitcoin exchange-traded funds (ETFs) traded on United States markets ended last week with $301 million in net inflows following 2 consecutive weeks of uninterrupted outflows. Although strong buying seen at the start of the week gave way to heavy selling over the final 2 days, funds recovered on a weekly basis. Institutional products in the market had experienced capital losses of $228 million and $680 million, respectively, in the previous 2 weeks. According to Farside Investors data, the funds' total net loss across October reached approximately $314 million.
How did fund movements affect the Bitcoin price?
In weekly trading that began on Monday, a total of $1.08 billion flowed into the funds in the first 3 days. Alongside these heavy purchases, the Bitcoin price climbed as high as $84,777 on Wednesday. However, market sentiment shifted on Thursday. Investors pulled a total of $774 million from the funds on Thursday and Friday. This swift withdrawal pushed the Bitcoin price back down toward the $80,000 threshold. Following these movements, Bitcoin traded at the $80,025 level, down 3.3% over the last 7 days. The Crypto Fear and Greed Index, reflecting general market sentiment, fell from 59 points the previous week to 50 points, moving into neutral territory.
Are institutional investors buying the dip?
Research conducted by market maker DWF Labs examined the behavior of large fund investors during price fluctuations. According to data in the report, exchange-traded fund investors do not tend to buy during price declines. Since January 2024, net capital outflows were recorded in 7 of the 8 major sell-off waves of at least 15% in the market. Contrary to widespread market belief, institutional players steer clear of buying at bottom levels.
Weak performance also continues in spot Ether exchange-traded funds traded on United States markets. Ether funds lost $221 million last week, closing their 4th consecutive week with net outflows.
This content is for information purposes only and does not constitute investment advice.