Bitcoin ETF Rally Loses Steam ⚡ – Outflows Signal Cooling Demand
Bitcoin spot ETF netflows have turned red, indicating a decline in institutional demand.
Bitcoin Spot ETFs Now Net Outflows
In a recent article on X, on-chain analytics outfit Glassnode highlighted the current US Bitcoin spot ETF netflow pattern. Investors may acquire exposure to an underlying asset without owning it via spot ETFs.
Spot ETFs enable off-chain access to cryptocurrencies, which may appeal to conventional traders unfamiliar with digital asset exchanges and wallets.
The US Securities and Exchange Commission (SEC) approved these Bitcoin investment vehicles in January 2024. Ethereum was approved six months later.
Glassnode contributed this data showing BTC spot ETF netflow over the previous several months:
As seen in the graph above, the US Bitcoin spot ETF netflow soared to positive levels earlier in September, suggesting that a lot of BTC was entering these funds' wallets.
However, the figure shows that demand has slowed significantly, with the netflow even going negative in recent days.
Institutional investors favor spot ETFs, since their netflow might indicate demand. The move to outflows suggests these wealthy investors have ceased their accumulation.
Net outflows have been restricted, but the trend will be watched in the coming days. Bitcoin may fall more if capital leaves these funds.
In an X post, analytics company Santiment showed where social media people predict BTC is heading following the price drop. Santiment uses “Social Volume,” which counts postings that mention a phrase or subject uniquely.
The analytics company provided a graphic comparing Social Volume for pessimistic Bitcoin price projections ($70,000 to $100,000) with bullish ones ($130,000 to $160,000).
