Bitcoin ETFs experience the fifth largest daily outflows since their inception.

Bitcoin ETFs Experience Fifth Largest Daily Outflows Since Their Inception

Bitcoin ETFs recorded the fifth largest daily outflow ever this week. This includes a large fund from Canada.

Bitcoin ETF Outflows Indicate Market Sentiment

Bitcoin ETFs are often used by investors as an indicator of the market sentiment for Bitcoin. Funds flowing into Bitcoin ETFs suggest that investors anticipate rising prices and see price peaks coming in the medium-term. Conversely, when large volumes flow out of Bitcoin ETFs, experts interpret this as a sign that other market participants expect falling prices. The market researchers from CoinShares, in its weekly status report, recorded outflows of $55.2 million from Bitcoin ETFs or comparable Bitcoin financial products.

Canadian Bitcoin ETF Primarily Affected

CoinShares reports that Purpose Bitcoin ETF from Canada is especially impacted by outflows. $50 million were withdrawn from the Purpose ETF within a day. Among Bitcoin ETFs, only ProShares Bitcoin Strategy ETF is even larger. The significant outflows from the Purpose ETF account for daily record values since its launch. This suggests that large institutional investors cashed in there.

Has Bitcoin Reached Its Year’s Peak?

The development is interesting because Bitcoin briefly gave hope for a bullish trend last Friday when Bitcoin prices reached above $28,000. Now Bitcoin trades around $27,500, apparently confirming the predictions of major investors and showing that Bitcoin has probably already hit its peak value for the year, as estimated by CoinShares.

Overview of Current Market Trends in Cryptocurrency

Overall, over the past week, about $45.2 million flowed out from Bitcoin-centered ETFs and comparable financial products. On the other hand, there are inflows totaling $17.3 million into assets specialized in Ethereum. This illustrates that even in stagnant Bitcoin prices, other tokens underline their potential. CoinShares additionally noted that it is often German financial products that profit from inflows of fresh capital from Europe. Even if this time those same products experienced a slight loss in money flows of $700,000.