Bitcoin ETFs Have Their Third Biggest Exodus Ever, Is the Bottom Coming?

U.S.-traded bitcoin (BTC) exchange-traded funds (ETFs) experienced their third-largest outflow since launch, recording a total outflow of $400.7 million yesterday.

Bitcoin, which hit an all-time high of over $93,000 on November 13, corrected nearly 6% in just a few days.

However, traders and investors do not think that the price movement is alarming because investors generally tend to try to take profits when bitcoin makes a new high. According to Glassnode data, investors made a total of $15 billion in sales in the last three days. Bitcoin has gained over 25% since Donald Trump was elected US president on November 5.

Different trends were noted among ETFs. BlackRock’s IBIT ETF continued its trend of strong inflows since November 7, recording inflows of $126.5 million. However, Fidelity’s FBTC ETF experienced an outflow of $179.2 million. While Bitwise’s BITB product lost 113.9 million dollars, Ark’s ARKB product attracted attention with an output of 161.7 million dollars. There was a total outflow of 74.9 million dollars from Grayscale’s two different products.

Yesterday was the third worst day for ETFs since launch. The other two dates when ETFs experienced outflows of over $400 million were November 4 ($541.1 million) and May 1 ($563.7 million). On November 4, bitcoin dropped to $67,000 and then made a big rally, rising above $93,000. The decline on May 1 coincided with bitcoin falling below $60,000.

It remains to be seen whether history will repeat itself and whether these outflows in ETFs will signal a new bottom.

On the other hand, ether (ETH) ETFs also experienced an outflow for the first time in about two weeks, with an outflow of $3.2 million recorded.