Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Bitcoin (CRYPTO: BTC) has bounced from its poor showing in Monday trading and is trading back above $61,000, despite significant net outflows from spot ETFs.
What Happened: At the time of writing, Bitcoin is trading around $61,300, flat over the past 24 hours but up from $59,086 in Monday evening trading.
On June 24, these ETFs recorded a net outflow of $174 million, marking the seventh consecutive day of negative fund flows.
The Grayscale Bitcoin Trust (OTC:GBTC), a major player in the crypto ETF space, bore the brunt of this exodus, with a single-day net outflow of $90.4295 million.
Despite these outflows, the total net asset value of Bitcoin spot ETFs remains substantial at $51.53 billion, underscoring the continued interest in cryptocurrency as an investment vehicle, according to data from SoSo Value.
This trend is not isolated to a single day or ETF.
According to a new report from CoinShares, digital asset investment products have seen outflows totaling $584 million over the past two weeks, erasing $1.2 billion in value.
Analysts attribute this trend to growing pessimism among investors regarding potential interest rate cuts by the Federal Reserve this year.
Bitcoin has been at the center of this downturn, accounting for $630 million in outflows.
Interestingly, despite the negative sentiment, investors have not significantly increased their short positions on Bitcoin, suggesting a wait-and-see approach rather than active betting against the cryptocurrency.
Also Read: Bitcoin Beat Down Below $60K, $360M In Liquidations
Why It Matters: While Bitcoin and Ethereum (CRYPTO: ETH) face headwinds, some altcoins and multi-asset products have seen modest inflows. This divergence hints at a potential shift in investor strategy, with some viewing the weakness in the altcoin market as a buying opportunity.
The geographic distribution of these outflows is noteworthy, with the United States leading at $475 million, followed by Canada at $109 million.
However, countries like Switzerland and Brazil have bucked the trend, recording inflows of $39 million and $48.5 million respectively.
The adoption curve of different cryptocurrencies will be discussed at Benzinga’s Future of Digital Assets conference on Nov.19.
Read Next: White House Rehires Former Crypto Adviser To National Security Council
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