Originally published on: October 23, 2024
Institutional investors in Bitcoin have hit the pause button on their recent buying spree, causing a $79.1 million outflow in US spot Bitcoin exchange-traded funds (ETFs) and bringing an end to a two-week bull run.
Data from UK-based investment firm Farside Investors showed that BTC price action consolidation has led to a decrease in institutional demand, with BTC/USD hovering within 10% of all-time highs. The US ETF inflows turned net negative on October 22, with the ARK 21Shares Bitcoin ETF experiencing outflows of $134 million, contributing to the overall $79.1 million outflow for the day. However, the largest ETF by assets under management, BlackRock’s iShares Bitcoin ETF (IBIT), managed to see $43 million in inflows, although this was significantly lower than the previous day’s $329 million.
Analysts have attributed the halt in buying to Bitcoin’s price staying relatively stagnant around $67k, leading to a decrease in investor interest in the ETFs. This marks the first time in two weeks that the US ETFs have shown net negative flows, stirring speculation about the future of institutional investment in Bitcoin.
Recent data from onchain analytics platform CryptoQuant revealed that institutional ETF ownership is now around 20%, with 1,179 institutions joining Bitcoin’s cap table this year, thanks to spot ETFs. Additionally, European investors have allocated over $100 million to US products year-to-date, signaling a global interest in Bitcoin ETFs.
The success of Bitcoin ETFs has been lauded as one of the biggest stories in the market, with over $5 billion in net inflows in Q3 alone. The total assets under management for US-based Bitcoin ETFs have hit a record $65 billion, indicating a growing demand for direct exposure to Bitcoin among institutional investors.
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