Bitcoin News Today: Bitcoin ETFs See $342.5M Outflows as Price Pulls Back 8.5%

Bitcoin ETF inflows have stalled amid profit-taking triggered by a recent price pullback. BlackRock’s iShares Bitcoin Trust (IBIT) experienced $292.5 million in outflows on Monday, marking the largest single-day withdrawal since May [1]. This followed a $40 million outflow on Friday, ending a 37-day streak of inflows. The decline came as Bitcoin dropped to $112,300 over the weekend, a 8.5% fall from its peak on July 14 before rebounding to around $115,000 [1].

Other major Bitcoin ETFs also saw outflows. Fidelity’s FBTC lost $40 million, and Grayscale’s GBTC saw a $10 million outflow [1]. In contrast, Bitwise’s BITB attracted $18.7 million in inflows during the same period [1]. The combined movement marked the third consecutive day of net outflows across the sector [1].

Despite the recent outflows, the overall trend in institutional demand for crypto has remained robust. Digital asset funds have seen $60 billion in inflows year-to-date, surpassing traditional alternatives like private equity [1]. Analysts at Bloomberg attribute this to the growing confidence in the asset class, supported by reduced volatility in Bitcoin since the launch of ETFs. BlackRock’s IBIT now exhibits a 90-day volatility rate of under 40, down from over 60 in January [1].

The price correction appears to be triggering strategic profit-taking rather than signaling a broader shift in sentiment. While the short-term outflows suggest investor caution, the long-term inflow trend remains intact. Institutional investors, in particular, are drawn to the improved stability and the broader legitimacy that ETF structures provide to digital assets.

The situation highlights the ongoing maturation of the crypto market, where investor behavior is becoming increasingly sophisticated and aligned with traditional market dynamics. As volatility continues to decline, more institutional capital is likely to flow into the space, reinforcing Bitcoin’s role as a legitimate asset class [1].

Source:

[1] Bitcoin ETF Inflows Stall as Price Pullback Sparks Profit-Taking

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