Cryptocurrency Market News: Bitcoin Price Seesaws as Bitcoin ETFs Post Outflows
Bitcoin's (BTC) price fell to below $57,000 on Wednesday from roughly $64,500 last Monday before recovering in what was a weird week. Investors seemingly soured on spot bitcoinexchange-traded funds (ETFs) last week, with Wednesday bringing record-single-day net outflows.
Beyond bitcoin's price gyrations, the latest week featured the sentencing of Binance founder and former CEO Changpeng Zhao, along with fintech company Block's (SQ) announcing Thursday it will buy more bitcoin with a portion of its profits.
Spot bitcoin ETFs ended the week with investors pulling more money out than was headed in, thanks to a record net outflow of $563.7 million on Wednesday, amid price fluctuations for the underlying crypto asset.
That day, Blackrock's iShares Bitcoin Trust (IBIT) experienced outflows for the first time since its trading debut on Jan. 11, with a net $36.9 million leaving the fund. Fidelity's Wise Origin Bitcoin Fund (FBTC) also had a fund record $191.1 million in outflows in a single day last week.
Up to this point, these ETFs have been the two of the most popular options among new investors seeking exposure to the spot bitcoin ETF market.
But that wasn't the only surprise when it came to spot bitcoin ETF flows last week.
Grayscale Bitcoin Trust (GBTC), the largest bitcoin ETF by assets and the target of the largest and most constant outflows so far, recorded its first net inflows on Friday, according to data from Farside Investors.GBTC posted net inflows of $63 million that day, but has recorded a net $17.46 billion gushing out of the fund since Jan. 11. A key reason for the shock that accompanied the flows into GBTC was that the spot bitcoin ETF still has a much higher fee rate than other options on the market at
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