The massive outflow of capital from Bitcoin (BTC) exchange-traded funds (ETFs) in the United States had a direct impact on the cryptocurrency market.
Yesterday, Monday, September 22, funds registered a net withdrawal of $363 million, reversing the positive inflow trend observed the previous Thursday and Friday.
The Fidelity Wise Origin Bitcoin Fund (FBTC) led the outflows with $276 million, followed by the ARK 21Shares Bitcoin ETF (ARKB), which lost $57 million.
The red bars represent daily outflows and the green bars represent daily inflows. Source: SosoValue.
To a lesser extent, the Grayscale Bitcoin Trust (GBTC) reported withdrawals of $24 million, while the VanEck Bitcoin ETF (HODL) saw an outflow of $9 million. These figures consolidated a day of strong selling pressure.
As a result, the price of Bitcoin experienced a significant decline, falling to $111,500. However, today, the digital currency showed signs of recovery, reaching $113,000.
Despite this rally, the price of Bitcoin remains 12% below its all-time high of $124,000, set in August. Spot ETFs play a crucial role in Bitcoin's price dynamics, as they buy and hold the currency to back their holdings. When investors withdraw capital, the managers of these funds may be forced to sell part of their holdings to cover the redemptions. This increase in supply, without equivalent demand, generates downward pressure that directly impacts the value of the digital currency.
