Bitcoin ETF Reverses Three-Weeks Trend With Net Negative Outflow  

For the first time since 6th September, the US spot BTC exchange-traded funds have recorded a net negative outflow. There were some positive notes with the inflows that came in on Friday. However, $300,000 million worth of outflows eclipsed the positive inflows, disrupting the positive inflow trend that has lasted for about three weeks. 

On the 27th of September, the total value of bitcoin held by funds was $61.21 billion. Recent outflows would see it reduce to 57.73 billion after just a week. Also, between the 27th of September to the 4th of October, the price of bitcoin dipped from $65,000 to $62,000; an event that negatively impacted on the worth of bitcoin held by funds. 

Tensions in the middle east appear to have had influence on investor behaviour towards bitcoin. Iran’s attack on Israel heightened the conflict in the region and made several investors pull out resources from risky assets like in crypto currencies. Interestingly, the decline in demand may continue for a while due to the escalating unrest. Also, the outcome of the US presidential election casts some level of uncertainty in the hearts of investors. 

On Friday, the 4th of October, the funds recorded a net inflow worth $25.6 million for the day. The BITB fund of Bitwise led the funds with an inflow of $15.3 million. FBTC of Fidelity followed in the ranks with an inflow of $13.6 million. HODL and ARKB funds of VamEck and Ark & 21Shares presented 5.29 million. It was a day of outflows for Grayscale’s GBTC, as it recorded $13.9 million in inflows. For the other funds, there wasn’t any remarkable inflow or outflow. 

In related news, Bitwise is about to convert its ETF strategy to one that rotates between crypto and U.S. Treasuries with hopes that it will mitigate the volatility of positions.