Spot Bitcoin ETFs traded in the US extended their decline to four days, starting the week with a net outflow of $40.5 million. Meanwhile, as the overall weakness in the market persists, the price of Bitcoin has dropped to $107,954.
BlackRock’s ETF Faces $100 Million Outflow
According to data released on Monday, BlackRock’s IBIT experienced an outflow of $100.7 million alone. While large players such as Fidelity, Grayscale, Bitwise, VanEck, and Invesco saw limited inflows in their ETFs, data from SoSoValue suggests this partly balanced the situation. However, last Friday saw an outflow of $366.6 million, and on Thursday, there was a $536.4 million outflow, marking continuous negative flows from spot Bitcoin ETFs for four consecutive trading days.
The price of Bitcoin displayed brief recovery on Monday, rising above $111,000 following a three-day outflow series, although the upward momentum was not sustained. According to CoinMarketCap, the largest cryptocurrency has fallen around 3% over the past 24 hours.
Discrepancy Between Institutional Flows and Market Dynamics
Vincent Liu, investment director of Kronos Research, highlighted that ETF data does not always reflect actual demand. He explained that in periods when prices rise despite ETF outflows, the demand in spot and derivative markets can balance out institutional sales. Liu clarified, “This does not mean the sentiments of institutional and individual investors completely diverge,” adding that “hedge transactions, changes in derivative positions, and reporting delays obscure demand indicators within the market structure.”
A similar scenario is evident in the Ethereum market. SoSoValue reports indicate a $145.7 million outflow from spot Ethereum ETFs on Monday, extending the negative flow series for a third day. Experts note that with weak institutional fund flows for both Bitcoin and Ethereum during this period, price movements have become more susceptible to short-term investor behaviors.