Bitcoin spot ETFs trading on Wall Street extended their losing streak, recording a total net outflow of $40.47 million yesterday, October 20. This negative capital flow marks the fourth consecutive day of red ink for these financial instruments, totaling $1.047 billion in withdrawals during this period.
The outflow was concentrated in the iShares Bitcoin Trust (IBIT), managed by BlackRock, which reported the only significant outflow of $100 million. On the other hand, two competitors managed to attract capital, although without offsetting the main outflow. The VanEck Bitcoin ETF (HODL) received $21 million in inflows, followed by the Bitwise Bitcoin ETF (BITB) with $12 million.
The following chart, provided by SosoValue, shows how capital has flowed into and out of BTC ETFs:
Bitcoin ETFs continue their losing streak. Source: SosoValue.
The dynamics of spot ETFs are directly correlated with the price. These products are designed to buy and hold bitcoin as collateral for the stocks they trade. Therefore, when investors withdraw capital from funds, asset managers are forced to sell part of their Bitcoin holdings to cover the redemptions. This increase in the digital asset's supply in the markets, without equivalent demand, exerts downward pressure on its price.
In line with recent ETF capital outflows, the Bitcoin price has experienced a correction. The digital currency lost support at $110,000, falling to the $107,000 level. The performance of these funds continues to be a key factor in the stability and direction of Bitcoin's price.
