Wall Street’s Spot Bitcoin (BTC) exchange-traded fund (ETF) has recorded capital outflows for the sixth straight day, weighing on the digital asset’s price.
During the day yesterday, November 5th, these instruments recorded a total net outflow of $137 million. This resulted in capital outflows of over $2 billion for the period..
Market performance showed contrasting results in flow capture. Fidelity Wise Origin Bitcoin Fund ETF (FBTC) led the inflows of $113 million, while iShares Bitcoin Trust (IBIT) managers concentrated the majority of redemptions, with $375 million outflows.
The following graph provided by SosoValue shows what the flow of funds to and from the BTC ETF looks like.
This persistent withdrawal pattern for ETFs Bitcoin price fell 6% last week. BTC fell below the $99,000 level but has recovered to around $103,000 today.
The relationship between spot ETFs and BTC price lies in their operating mechanism. These funds work by buying and holding Bitcoin to back their actions, so when investors withdraw their capital, managers may need to sell some of their holdings to cover redemptions.
This increase in the supply of digital assets, without offsetting demand, is a factor contributing to direct downward pressure on Bitcoin’s value.
Despite the current volatility, as reported by CriptoNoticias; Bitcoin’s long-term growth fundamentals remain strong. In this context, this correction is interpreted as a liquidation of speculative positions and a potential accumulation opportunity for investors with a long-term perspective.
