Coinspeaker Crypto ETF Market Suffers Massive Outflows of $387M amid Bitcoin Price Drop
The crypto ETF market has faced a turbulent week, with significant fund outflows as investors reacted to the bearish sentiment caused by Bitcoin’s BTC $93 788 24h volatility: 1.3% Market cap: $1.86 T Vol. 24h: $36.65 B sharp decline. The crypto asset broke below its all-time high of $108,000, plunging to its current price of $93,613.
In the past week, all the Bitcoin spot ETFs approved in the United States saw a combined outflow of $387.54 million, according to data from leading blockchain ETF tracker SoSoValue. The total outflow was accrued between December 26 and 27, bringing the net outflows to $1.5 billion.
Midweek Relief for Bitcoin Spot ETFs
On Friday alone, the funds recorded a massive outflow of $297 million with Fidelity Investments leading the chart. The company’s ETF, known as the Fidelity Wise Origin Bitcoin Fund (FBTC) registered its longest single-day outflow of $208.20 million since the fund’s launch eleven months ago.
That same day, ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Valkyrie Bitcoin Fund (BRRR), and Invesco Galaxy Bitcoin ETF (BTCO) registered $112 million, $36 million, $10 million, and $14 million in outflows respectively.
Despite the gloomy outlook, Thursday provided a glimmer of hope as Bitcoin spot ETFs attracted $475.15 million in inflows from institutional investors. Fidelity’s FBTC led the day with $254.37 million in new investments, followed by ARK 21Shares’ ARKB with $186.94 million.
Smaller inflows were also recorded by Grayscale’s Bitcoin Mini Trust (BTC) at $7.19 million and VanEck’s HODL at $2.70 million.
Beyond ETFs: A Week of Milestones in the Crypto Ecosystem
Outside the ETF market, the broader crypto ecosystem witnessed notable developments last week. The week saw the likes of KULR Technology Group embrace Bitcoin as a corporate reserve following in the footsteps of MicroStrategy.
To mark its entrance into the crypto economy, the advanced energy management firm purchased 217.18 Bitcoins valued at around $21 million on December 26. The company had allocated 90% of its surplus cash to support its bitcoin reserves strategy, making the purchase the first of many the firm intends to acquire going forward.
In a regulatory breakthrough, Cambodia opened its borders to cryptocurrencies such as stablecoins. The National Bank of Cambodia (NBC) has offered commercial banks and other payment institutions in the region the opportunity to explore the crypto market under strict regulatory oversight. However, entities offering these services must obtain operational licenses.
In legal news, the government of Montenegro approved the extradition of Do Kwon, the disgraced co-founder of Terra Labs, to the United States. The decision followed both the US and South Korea meeting the extradition criteria. However, the US was the first to formally request custody of Kwon to prosecute him for his alleged criminal activities.
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Crypto ETF Market Suffers Massive Outflows of $387M amid Bitcoin Price Drop
