Spot Bitcoin ETF ended a 6-session capital withdrawal streak with 219 million USD inflow, led by Fidelity and BlackRock, amidst Bitcoin's price correction after a historic peak and improved market sentiment.
SoSoValue data shows that capital flow reversed on Monday, after six consecutive withdrawal sessions. Previously, Bitcoin reached a new peak of 124,128 USD according to CoinGecko before dropping to 110,186 USD, while the Crypto Fear & Greed index rose to 60.
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Spot Bitcoin ETF recorded 219 million USD inflow after 6 consecutive withdrawal sessions, according to SoSoValue.
Fidelity FBTC, BlackRock IBIT, and ARK 21Shares ARKB led inflows on the recovery day.
Sentiment improved after the Fed Chair's speech, with the Fear & Greed index rising to 60, amidst Bitcoin's price correction from a new peak.
What is a Spot Bitcoin ETF?
Spot Bitcoin ETF is an exchange-traded fund holding underlying Bitcoin, allowing investors to access BTC price fluctuations through listed certificates.
Unlike futures ETFs, spot ETFs directly reflect supply and demand in the spot market and require a mechanism to custody BTC. This causes ETF capital flows to closely relate to price movements and the risk sentiment of institutional investors.
What just happened with the capital flow of the Spot Bitcoin ETF?
Spot Bitcoin ETFs in the U.S. recorded 219 million USD inflow on Monday, ending a 6-session withdrawal streak, according to SoSoValue.
The reversal of capital flows indicates that sentiment has become less cautious after a price adjustment period. This is a positive signal in the context of the cryptocurrency market, which is sensitive to monetary policy messages and yield fluctuations.
How long did the withdrawal streak last?
The withdrawal streak lasted 6 sessions, starting from August 15 and ending on that Friday.
In this series, the collective selling pressure reflects repeated net withdrawal orders each session. The prolonged trend indicates that investors are reducing risk after Bitcoin just reached a historic peak and are waiting for additional signals from U.S. policy.
How significant is the withdrawal amount?
The strongest was on August 19 with a net withdrawal of 523.31 million USD, followed by Wednesday with 311.57 million USD, according to SoSoValue.
The significant withdrawal amount reinforces the cautious stance of institutions in the short term. These figures coincide with Bitcoin's price adjusting by double-digit percentages from the peak, amplifying defensive sentiment and profit-taking.
Which fund led the inflow recovery?
Fidelity FBTC, BlackRock IBIT, and ARK 21Shares ARKB led the recovery day, contributing the most to the 219 million USD inflow.
FBTC received 65.56 million USD, IBIT 63.38 million USD, ARKB 61.21 million USD. Bitwise BITB recorded 15.18 million USD, while Grayscale's Bitcoin Trust (BTC) and VanEck HODL achieved 7.35 million USD and 6.32 million USD, respectively.
Issuer/Fund Net Inflow (USD) Fidelity Wise Origin Bitcoin Fund (FBTC) 65.56 million USD BlackRock iShares Bitcoin Trust (IBIT) 63.38 million USD ARK 21Shares Bitcoin ETF (ARKB) 61.21 million USD Bitwise Bitcoin ETF (BITB) 15.18 million USD Grayscale Bitcoin Trust (BTC) 7.35 million USD VanEck Bitcoin Trust (HODL) 6.32 million USD
Source: SoSoValue
How did Bitcoin's price fluctuate after reaching a new peak?
Bitcoin reached a historic peak of 124,128 USD on August 14 according to CoinGecko, before dropping 11% to 110,186 USD.
The downward adjustment after the peak often triggers profit-taking and risk rebalancing by institutions, creating a series of ETF withdrawals. When selling pressure eases and the market digests macro information, capital flow can reverse as noted on Monday.
Price source: CoinGecko
How has investor sentiment changed?
After the Fed Chair Jerome Powell's speech was interpreted as softer than expected, sentiment turned positive; the Crypto Fear & Greed index rose to 60, in the Greed zone.
According to CoinShares, Mr. James Butterfill stated that recently cryptocurrency funds witnessed the largest withdrawals since March, around 2 billion USD, due to divisive U.S. policy perspectives. As expectations for rate cuts rise, risk appetite improves, contributing to ETF inflows. Refer to the index: Alternative.me Crypto Fear & Greed Index.
How does ETF capital flow relate to monetary policy signals?
ETF capital flows often react quickly to interest rate expectations because the cost of capital and risk asset valuations change according to the Fed's path.
When the soft message helps yield cool down, risk assets like Bitcoin benefit from less stringent cash flow discounts and more positive sentiment. Conversely, tightening signals often increase volatility and trigger defensive actions through ETF withdrawals.
What are the notable withdrawal milestones?
In the series of 6 capital withdrawal sessions, two notable milestones are August 19 and Wednesday of the week, according to SoSoValue.
Timeline Net Capital Flow (USD) August 19 -523.31 million USD Wednesday (withdrawal week) -311.57 million USD
These two sessions created most of the withdrawal pressure, before the market shifted to a price support state and recorded inflow again at the beginning of the following week.
What factors could determine the upcoming capital flow trend?
Interest rate expectations, Bitcoin price fluctuations around the peak, and the durability of Greed sentiment will influence ETF capital flows.
Institutional investors often monitor U.S. economic data, Fed speeches, and market liquidity. Sustaining inflows requires confirmation from price, volume, and market breadth, alongside supportive macro signals.
Frequently Asked Questions
How is Spot Bitcoin ETF different from futures ETFs?
Spot ETFs hold underlying BTC, directly reflecting spot prices. Futures ETFs track prices through derivatives, which may incur rolling costs and basis spreads.
Why does the Fed Chair's speech impact Bitcoin ETF capital flow?
Interest rate expectations shape capital costs and risk appetites. Soft signals encourage allocation to risk assets, often seen through ETF inflows.
What does a Crypto Fear & Greed index of 60 mean?
The level of 60 indicates a Greed trend, where investors are willing to accept higher risks. Refer to: Alternative.me Crypto Fear & Greed Index.
Which funds led inflows on the recovery day?
Fidelity FBTC led with 65.56 million USD, followed by BlackRock IBIT 63.38 million USD and ARK 21Shares ARKB 61.21 million USD, according to SoSoValue.
When did Bitcoin reach a new peak and what was the level?
On August 14, Bitcoin reached a historic peak of 124,128 USD, according to CoinGecko, before adjusting to around 110,186 USD.
Source: https://tintucbitcoin.com/bitcoin-etf-ngung-rut-hut-219-trieu/
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