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Spot Bitcoin ETFs See $81 Million Outflows as BTC Temporarily Falls Below $57K
- Spot Bitcoin ETFs experienced a total outflow of US$81.4 million, translating to 1,415 BTC amidst market fluctuations.
- Only BlackRock’s IBIT and Franklin Templeton’s EZBC recorded net inflows, with IBIT not seeing net outflows since 1 May, now holding 348,609 Bitcoin.
- The newly approved MSTX leveraged ETF by Defiance, targeting MicroStrategy, saw a remarkable US$22 million in volume on its debut.
The latest trading day for the Spot Bitcoin exchange-traded funds (ETFs) saw a combined US$81.4 million (AU$123.07 million) in outflows, at current prices that’s a whopping 1,415 BTC.
Although this isn’t the worst day for the funds by any stretch – as August so far has seen four days with worse outflows – it marks six days with outflows compared to five with inflows for the month of August so far.
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The only funds with net inflows were BlackRock’s IBIT with US$2.7 million (AU$4.1 million) and Franklin Templeton’s EZBC with US$3.4 million (AU$5.1 million) in positive flows.
Interestingly, IBIT has not seen net outflows since 1 May, when it had US$36.9 million (AU$55.8 million) leaving the fund rather than entering it. Even more interesting is the fact that according to data from Farside, that day was the only day IBIT had net outflows.
This means IBIT has had 106 days without net outflows in a row and now holds 348,609 Bitcoin.
Leveraged Fund Draws Investors’ Attention
Meanwhile, another ETF is making waves, and Michael Saylor’s MicroStrategy (MSTR) is involved. US-based ETF issuer Defiance has just received approval from the US Securities and Exchange Commission (SEC) to launch an MSTR fund.
The fund called MSTX, is a leveraged fund and aims to offer 175% daily targeted long exposure to MicroStrategy, allowing investors leveraged exposure to disruptive companies without requiring a margin account.
The fund had an eye-watering US$22 million (AU$33.3 million) in volume on the first trading day, possibly a record-breaker, as Bloomberg Senior ETF analyst Eric Balchunas notes.
Bitcoin Price Unimpressed by ETF Activity
While the ETFs overall had outflows, the IBIT and MSTX news should’ve been a bullish signal, however the crypto market seems to disagree with most major assets in the red. BTC has lost 2.6% on the daily and 6.3% on the weekly timeframe, while ETH is down 3.6% and 4% respectively.
Bitcoin dipped temporarily under the US$57K (AU$86.2K) mark but has since managed to climb back up to US$57,602 (AU$87,099) at the time of writing.
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TON and ADA have taken the biggest hit among the top ten by market cap on the daily timeframe and are down 4.1% and 4.2% respectively.
It remains to be seen if the bulls or the bears get the upper hand now, but Crypto Twitter analyst Rekt Capital writes that BTC has rebounded from similar levels before. He is hopeful that we get a short-term consolidation but says it’s “important for BTC to break this recently formed downtrend (blue) soon”.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
