close
close

Bitcoin News: ETFs record over a billion dollars in capital outflows! – Coincierge.de

Click here to see the best crypto presales that could increase tenfold this year!

The approval of the Spot Bitcoin ETFs in the USA was probably the best thing that could have happened to the crypto market this year. After Bitcoin and most altcoins had already recovered slightly last year, things quickly continued to rise after the market launch of the exchange-traded funds in January this year, with Bitcoin even reaching a new all-time high. Billions of dollars flowed into the ETFs in the first six months. Now there are massive sell-offs. Will the price now be pushed down just as quickly again?

Why do Bitcoin ETFs have such a strong impact?

The Spot Bitcoin ETFs, which were approved in the US this year, give all institutional investors access to the crypto market. Anyone who buys shares in the funds and thus indirectly invests in Bitcoin does not have to worry about custody and can easily reflect the ETF shares on their balance sheets. Since they are physically secured Spot Bitcoin ETFs, the issuers actually have to buy Bitcoin when someone buys shares in their funds.

Since BlackRock, the largest asset manager in the world, also offers a Bitcoin ETF, this naturally creates great confidence in the market, which has previously had a rather questionable reputation. Within the first six months, well over 50 billion dollars flowed into Bitcoin ETFs and thus also into Bitcoin. But now there are increasing capital outflows.

Investors are withdrawing capital

Expectations for the Spot Bitcoin ETFs were extremely high, as investors have been waiting for years for the US Securities and Exchange Commission (SEC) to approve them. Nevertheless, expectations have even been exceeded. The Bitcoin ETFs have broken several records. Among other things, no ETF has ever cracked the $20 billion AUM mark (assets under management) as quickly as BlackRock's iShares Bitcoin Trust ETF. But now capital has been withdrawn for a few days.

Yesterday alone, Bitcoin worth 170 million dollars was sold by the issuers as their customers sold their shares in the funds. This week has already seen 2 days in which more than 200 million dollars were withdrawn each. This continues the losing streak, so that there have now been 8 days in a row of significant sales. During this time, well over a billion dollars have been withdrawn from Bitcoin.

However, there is no reason to worry. It is quite clear that after such a long period in which billions are being pumped into the market week after week, there will also be days when capital is withdrawn. After all, the investors who got in early have been able to make large profits.

Since institutional investors typically take around 12 months to complete their due diligence checks, there is a good chance that billions more will be pumped into the market over the next year, which will also support the bullish Bitcoin Predictions Most of the experts are likely to arrive after all.

Last updated on September 7, 2024

Pepe Unchained – Meme Coin with its own blockchain

  • Unique ecosystem: success and growth right from the start – don’t miss out!
  • Massive Passive Income: Dynamic Staking Rewards with $PEPU
  • Low transaction costs: Ethereum Layer-2 Chain with Pepe meme

Crypto All-Stars – Revolutionary MemeVault for Multi-Token Staking

  • Revolutionary MemeVault: Earn $STARS by staking meme coins in a unique protocol.
  • Global multi-token staking
  • Huge reward potential
  • A heavily audited ERC-1155 based staking system.

Base Dawgz – Base Meme Coin with Multi Chain Buying Options

  • Multi-Chain Buying Options: Buy $DAWGZ seamlessly across multiple blockchain networks
  • Combines the popularity of Base with the appeal of Dog Meme Coins that dominate the crypto market
  • Points earned from sharing Base Dawgz content can be redeemed for $DAWGZ tokens after the pre-sale closes

Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.

You may also like...