The 12 spot Bitcoin ETF has witnessed over $300 million leave the funds from Oct 1 to Oct 3 as analysts point out selling pressure and warn of key price levels.
The Bitcoin ETFs after ending the month of September with over $1.1 billion in inflow witnessed approximately $388.4 million leave the funds in the first 3 days of October.
A lot of factors contributed to this massive outflow in the first three days of the new month the most significant being the Iran-Israel escalation which saw Iran fire about 400 missiles into Israeli territory. The geopolitical tensions were a significant factor in the huge outflows from Bitcoin ETFs with Bitcoin price falling as low as $60,000.
On October 4, a positive US payroll data brought some relief to the market pushing bitcoin back to $62,000 and Bitcoin ETFs regaining an inflow of $25.59 million.
However, this wasn’t enough to offset the massive outflows of the first three days of the month.
The bitcoin ETFs have enjoyed three consecutive weeks of inflow since September 13 amounting to over $1.91 billion inflows into spot Bitcoin ETFs.
The case was different this week as outflows caused these funds to end the first week of October in negative territory, with $301.54 million flowing out.
On the last day of trading, the 12 spot bitcoin ETFs recorded $25.59 million in inflows a paltry sum giving Septembers performance.
- Bitwise’s BITB led with inflows of $15.29 million.
- Fidelity’s FBTC, $13.63 million.
- ARK and 21Shares’ ARKB saw its first inflow this week, bringing in $5.29 million.
- VanEck’s BTCW, $5.29 million.
- Grayscale’s GBTC recorded outflows of $13.91.
Analysts Point out Selling Pressure
Some crypto analysts have pointed out that selling pressure was not rooted to the Bitcoin ETFs alone as some Bitcoin miners were selling bitcoin.
According to Ali Martinez a respected crypto analyst, Bitcoin miner have sold over $143 million worth of Bitcoin since September 29.
Ali explained that the selling activity could intensify pointing out in a subsequent X post that Bitcoin had been trading below the short-term holders’ realized price, which currently stands at $63,000.
The $63,000 price level represents the average cost at which short-term investors acquired their Bitcoin. If the the market dips below it, these holders are more inclined to sell in an attempt to minimize losses.
The resultant effect of this is a lot of holders selling their Bitcoin assets at the same time resulting in selling pressure.
What to Know
- Bitcoin ETFs provides institutional investors the ability to invest in Bitcoin without actually owning any assets.
- 11 spot Bitcoin ETFs were launched in the United States in January in a historic shift in the crypto industry. Ethereum ETFs were launched later in the year in addition to the Bitcoin ETFs.