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Breaking News: Crypto Market Structure Talks: Senator Lummis Addresses Latest Legislation Plans

Bitcoin ETF Outflows Are Ramping Up Again, What Does This Mean For BTC Price?

Scott Matherson
Scott Matherson
Last Updated: June 11, 2024 7:56 am
3 mins read
Bitcoin price

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Bitcoin ETF outflows are on the rise once again after a change in the tide last week. These outflows, given the ETFs’ correlation with the Bitcoin price, have a substantial impact on how well the cryptocurrency performs over time. So, as outflows are ramping up, will it trigger a crash in the BTC price?

ARK Invest And Grayscale Lead Outflows

While Grayscale’s Spot Bitcoin ETF has been the natural culprit for ETF outflows due to its high fees, another fund has joined the trend in a surprising turn of events. Cathie Wood’s ARK Invest saw a substantial outflow from its ETF, leading to a new record for the investment firm.

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The Ark 21Shares Fund (ARKB) saw a record $87.5 million leave its fund on Tuesday, April 2. Interestingly, the fund’s outflows were even higher than that of Grayscale, which saw around $81.9 million in outflows in the same day.

For both these funds, it marked the second consecutive day of outflows, although it was more concerning on the part of the Ark 21Shares Fund. This is because Grayscale saw a decline in outflows between Monday and Tuesday, going from $302.6 million to $81.9 million. Whereas the ARK Invest fund saw outflows go from $0.3 million on Monday to $87.5 million on Tuesday, resulting in a 29,000% increase in outflows in a single day.

Only these two funds have experienced outflows this week though, as the other ETFs continue to see upside. While Monday’s net flows ended up being negative to the tune of $85.7 million, Tuesday’s numbers looked better with positive net flows of $40.3 million.

How Will This Affect Bitcoin Price?

Since the Spot Bitcoin ETFs were approved in January, their effect on the Bitcoin price has been positive overall. However, there have been points where outflows from the funds have affected the BTC price, causing it to crash.

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A few instances of this is back in January, a week after the ETFs were first approved. Outflows had plagued the funds and the Bitcoin price had declined as a result. Then again, in March, when outflows turned negative between March 18 and March 22 and the Bitcoin price crashed from $73,000 to $61,000.

Given BTC’s performance during periods where outflows prevail in Spot ETFs, this current trend does not bode well for the price. There has been a recovery in the BTC price after inflows turned positive on Tuesday. But unless they stay positive through the end of the week, the BTC price could see further crashes toward the $60,000 level.

Bitcoin price chart from Tradingview.com

BTC price recovers above $66,000 | Source: BTCUSD on Tradingview.com
Featured image from Business News This Week, chart from Tradingview.com
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Scott Matherson
Scott Matherson

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

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Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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