The world’s largest cryptocurrency Bitcoin (BTC) has witnessed a strong bounceback above $67,000 following the Fed’s dovish commentary on Wednesday. At press time, the Bitcoin (BTC) price is up 8.8% trading at 66,787.80 with a market cap of $1.314. However, the spot Bitcoin ETFs registered net outflows for the third consecutive day in a row.
Bitcoin ETFs See Net Outflows For Third Day
As per data from Farside investors, the net outflows from Bitcoin ETFs on Wednesday, March 20, stood at $261 million. The accumulated net outflows over the past three days amount to $742 million. Specifically, on March 18, there was a net outflow of $154.3 million, followed by a larger outflow of $326.2 million on March 19.
On Wednesday, the Grayscale Bitcoin Trust (GBTC) experienced a noteworthy single-day net outflow of $386 million, contributing to its total historical net outflow of $13.27 billion.
Conversely, the BlackRock Bitcoin ETF IBIT witnessed the highest single-day net inflow among Bitcoin spot ETFs, totaling $49.28 million. This substantial inflow propelled IBIT’s total historical net inflow to $13.09 billion. However, the inflows in the Bitcoin ETFs have dried up significantly this week as the markets remained worried about the central bank’s actions.
On a recent trading day, BlackRock’s iShares Bitcoin Trust (IBIT) experienced its second-lowest net inflow, totaling $49.3 million. This figure was only marginally higher than its lowest daily inflow recorded on February 6 by a mere $4 million. Likewise, the Fidelity Wise Origin Bitcoin Fund (FBTC) also saw a similarly subdued inflow, reaching $12.9 million, marking one of its lowest inflow days.
On Wednesday, BlackRock’s iShares Bitcoin Trust (IBIT) experienced its second-lowest net inflow, totaling $49.3 million. This figure was only marginally higher than its lowest daily inflow recorded on February 6 by a mere $4 million. Likewise, the Fidelity Wise Origin Bitcoin Fund (FBTC) also saw a similarly subdued inflow, reaching $12.9 million, marking one of its lowest inflow days.
BTC ETFs In ‘Dumb Money’
Max Keiser, a prominent Bitcoin maximalist, commented that investors in Bitcoin ETFs prove to be the epitome of ‘dumb money.’ They engage in buying and selling Bitcoin ETFs, often failing to achieve significant gains and experiencing mostly losses. However, this activity generates substantial commissions for brokers. These investors struggle to navigate the volatility of Bitcoin effectively, leading to potential financial setbacks.
As predicted,
ETF buyers are the quintessential ‘dumb money’ who will buy and sell the #Bitcoin ETF’s and realize no gains (and mostly losses) but will generate lots of commissions for brokers.
They can’t surf #Bitcoin’s volatility, and they’ll drown. https://t.co/sUwNMxWIdb
— Max Keiser (@maxkeiser) March 20, 2024
On-chain data provider Santiment reported that in the last 10 days, there has been a net decrease of -311,000 total non-zero coin wallets on the Bitcoin network. While this might worry novice traders, historically, such a trend has been associated with moments of fear, uncertainty, and doubt (FUD) in the market. It suggests that small Bitcoin wallets are often capitulating, selling their coins, while larger wallets are seizing the opportunity to accumulate more.
👋🐟 Over the past 10 days, a net difference of -311K total non-0 coin wallets have dropped off of the #Bitcoin network. To a novice trader, this may appear to be a concern with less overall active participants. However, historically this stat has reflected #FUD moments in the… pic.twitter.com/ZpbCMGU1lX
— Santiment (@santimentfeed) March 21, 2024
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
