Bitcoin ETFs saw net capital outflows totaling $634 million over two consecutive days
Bitcoin-based exchange-traded funds (ETFs) experienced net outflows of $634 million over two consecutive days, marking the steepest decline for these instruments so far in December.
On Monday, the investment vehicles reported outflows of $357 million, followed by another $277 million on Tuesday, December 16, reinforcing a scenario of weak demand for Bitcoin.
Selling pressure was primarily driven by the iShares Bitcoin Trust (IBIT), managed by BlackRock, which saw outflows of $210 million yesterday.
Other financial products also reported negative balances, including the Bitwise Bitcoin ETF (BITB) with $50 million in outflows, in addition to smaller outflows from funds such as the ARK 21Shares Bitcoin ETF (ARKB), Grayscale Bitcoin Trust (GBTC), and VanEck Bitcoin ETF (HODL).
The chart below shows, day by day, the capital flows to and from BTC ETFs.
This disinvestment trend has directly impacted the price of Bitcoin, which has experienced a 6% decline over the past week. It is currently trading around $87,000, after having reached nearly $88,000.
The dynamics of spot ETFs are fundamental to the market, as these structures require managers to hold physical Bitcoin to back the issued shares. When investors withdraw their capital en masse, institutions are forced to liquidate part of their holdings of the digital currency to meet redemptions.
This sudden increase in available supply, coupled with decreased buying interest, generates downward pressure that is usually reflected immediately in the price of BTC.
