“Bitcoin is at a turning point. Bitcoin cash ETFs have seen massive capital outflows this week, with BlackRock’s IBIT fund leading the charge with its biggest day of redemptions since August. In total, as of October 30, the net outflow of these products was $388.43 million, with BlackRock’s contribution of $290.88 million. This trend signals a change in the short-term […]”, — write: businessua.com.ua
Bitcoin is at a turning point. This week Bitcoin Cash ETFs experienced a massive outflow of capital, with BlackRock’s IBIT fund leading the charge with its biggest redemption day since August. In total, as of October 30, the net outflow of these products was $388.43 million, with BlackRock’s contribution of $290.88 million. This trend signals a shift in near-term sentiment as investors reassess their exposure to Bitcoin amid rising macroeconomic uncertainty.
Key points of this article:
- Spot bitcoin ETFs saw massive capital outflows, with BlackRock’s IBIT fund recording its biggest day of redemptions since August.
- Analysts attribute this capital outflow to growing macroeconomic uncertainty, exacerbated by geopolitical tensions and recent monetary policy decisions.
- Despite these short-term shocks, the long-term outlook for institutional Bitcoin adoption remains positive, with total inflows in October exceeding those in September.
Data SoSoValue shows that spot Bitcoin ETFs have suffered this week significant outflow . Apart from IBIT from BlackRock funds ARKB by Ark & 21Shares and BITB by Bitwise also suffered losses, the outflow of which amounted to 65.62 million US dollars and 55.15 million US dollars in accordance.
These movements lead to a negative net figure weekly flow, as a result of which these funds leave in general 607 million dollars .
Analysts believe that this outflow of funds is caused mainly macroeconomic uncertainty exacerbated by recent geopolitical tensions and monetary policy decisions. Although the Fed announced an interest rate cut, cautious comments Jerome Powell question the future actions of the central bank.
Also, closing arbitration window between the spot price of Bitcoin and ETFs has reduced the attractiveness of these products for short-term traders
The crypto market is like a roller coaster
These options also reflect some caution Options market to bitcoin also reflects this heightened caution. 7-day coefficient 25-delta which measures the cost of fall protection, fell from -0.1 to -8 between October 26 and 30, indicating readiness traders pay high premium by put options .
Although this indicator is somewhat recovered he remains in negative zone, which indicates the still unstable mood in the market.
Despite these short-term shocks, the long-term prospects for institutional adoption of Bitcoin remain positive . Total inflow of funds to spot bitcoin ETFs made in October 3.61 billion dollars which slightly exceeds the indicators of September.
Analysts expect this recent outflow to be only a short-term correction rather than a structural reversal in institutional demand.
While spot bitcoin ETFs face short-term challenges, including macroeconomic uncertainty, the long-term outlook for these products remains strong. Institutional investors continue to show interest in Bitcoin, even as current market volatility encourages them temporarily adjust their positions.
Source: journalducoin.com
Please wait…