This is the biggest outflow since Bitcoin ETFs started. Analysts say this trend is mainly due to profit-taking, but some think it might show a bigger change in how investors feel.
Before this decline, Bitcoin ETFs saw strong inflows, raising their total assets from $100 billion to $121 billion in just 15 days. Recent outflows have brought total net assets down to $105 billion.
Grayscale’s GBTC fund played a big role in these outflows, selling 1,870 BTC in only three days. BlackRock’s IBIT fund kept buying, but it wasn’t enough to stop the selling pressure.
Even with these challenges, people still believe in Bitcoin. This is shown by the fact that Bitcoin ETFs had more total assets than gold ETFs in December. However the recent outflows have slowed down Bitcoin’s price growth for now.
Experts say that profit-taking is a big reason for Bitcoin ETF outflows, but growing interest in Ethereum might show a change in where investors want to put their money.
Ethereum’s price is staying below its highest point, which could lead to more money coming into Ethereum ETFs. Bitcoin and Ethereum are key parts of institutional portfolios, and how they perform next will probably affect the wider cryptocurrency market.
