The downturn in the cryptocurrency market has significantly impacted Bitcoin exchange-traded funds (ETFs), resulting in a streak of five consecutive days of outflows. As retail and institutional investors adopt a more cautious trading stance, the funds have seen little to no new capital inflow during this period.
Recent data from SoSoValue indicates that on January 23, the total daily ETF flows from all Bitcoin funds remained in the negative, with an outflow amounting to $103.57 million. This trend reflects the broader bearish sentiment prevailing in the market, which has affected other ETF products, including those related to Ethereum.
Despite the ongoing withdrawals, the cumulative net inflow for U.S. Bitcoin spot ETFs stands at approximately $56.49 billion. However, increasing market fears seem to overshadow demand, contributing to the adverse performance. Bitcoin”s price has seen a sharp correction, falling from a recent high near $98,000 to around $87,000 over just a few days.
As the price continues to languish in the red zone, currently trading around $88,646, it has experienced a decline of 0.83% in the past 24 hours, according to data from TradingView. The selling pressure remains intense, leading investors to exercise caution as the market sentiment weakens.
In this challenging environment, BlackRock has maintained its dominance in the Bitcoin ETF market, accounting for over 99% of the outflows recorded on the latest trading day. The BlackRock Bitcoin ETF alone saw an outflow of $101.62 million, highlighting the company”s significant influence in the current market landscape.
The ongoing outflows from Bitcoin ETFs underscore the broader challenges faced by the cryptocurrency market as it grapples with declining prices and investor uncertainty. Moving forward, market participants will be keenly observing any potential shifts in sentiment that could stabilize or reverse the current trends.
