Spot Bitcoin Exchange Traded Funds (ETFs) managed on Wall Street markets extended their negative streak, recording net outflows totaling $40.47 million yesterday, October 20th.
This negative capital flow These financial instruments will be in the red for 4 consecutive days.totaling $1.047 billion in withdrawals were added during this period.
The movement to leave was concentrated on iShares Bitcoin Trust (IBIT)managed by BlackRock. reported that its only significant expenditure was $100 million..
Meanwhile, two of its competitors were successful in raising capital, although they did not offset their major exits. The VanEck Bitcoin ETF (HODL) had $21 million in inflows, followed by the Bitwise Bitcoin ETF (BITB) with $12 million in inflows.
The following graph provided by SosoValue shows what the flow of funds to and from the BTC ETF looks like.
According to a report by CriptoNoticias, the movement of spot ETFs has a direct correlation with the price of digital currencies. These products are designed to buy and hold Bitcoin as backing for the stocks you trade.
Therefore, when investors withdraw their funds from the fund, managers are forced to sell some of their Bitcoin holdings to cover redemptions. An increase in the supply of a digital asset in the market will put downward pressure on its price in the absence of an equal demand..
Bitcoin price has been undergoing a correction following recent capital outflows from ETFs. The digital currency lost support at $110,000 and fell to the $107,000 level.
The performance of these funds continues to be a key factor in the stability and direction of Bitcoin price.
