Bitcoin ETF outflow pain eases just as another headwind gathers strength
Key takeaways
- The first relates to bitcoin spot exchange-traded funds (ETFs) listed in the U.S., which lost another $228 million in redemptions in the shortened week.
- The good news is that the bleeding slowed for a second straight week.
- The other notable dynamic is the decoupling of the U.S. two-year Treasury yield, which is sensitive to Fed interest rate expectations, and WTI crude oil futures.
As traders return to their desks following an extended weekend in the U.S., there are two market dynamics worth noting that could influence the price of bitcoin BTC$64,547.40 and other major cryptocurrencies, which are buoyant today on the back of U.S.-Iran deal hopes.
The first relates to bitcoin spot exchange-traded funds (ETFs) listed in the U.S., which lost another $228 million in redemptions in the shortened week. That's a sixth straight week in the red, taking the cumulative figure to $5.94 billion, according to data source SoSoValue.
The good news is that the bleeding slowed for a second straight week. That follows $315.84 million in withdrawals the week before, marking a turnaround from the prior four weeks, when outflows not only topped $1 billion each week but grew larger with each passing week.