• U.S. Bitcoin ETFs lose $1.22 billion of assets in the past week indicating increased caution among institutional investors.
• Withdrawals were driven by BlackRock, Fidelity and Grayscale funds as macro pressures stifled risk appetite.
• Despite departures, Bitcoin pumped to over $106,000, proving that retail demand remains strong despite world market turmoil.

Bitcoin exchange-traded funds in the United States experienced a large outflow last week with net outflows reaching $1.22 billion. It was the third-largest ever exit. On Friday alone, investors withdrew $558.4 million, the largest one-day outflow since August. The sell-off reflects increasing caution among institutions as global markets face economic turbulence and changing sentiment to risk assets.

According to data from SoSoValue, it was BlackRock’s IBIT fund that accounted for most of the redemptions. FBTC (Fidelity) and GBTC (Grayscale) followed closely behind. The trend shows that major institutions are reviewing their exposure to Bitcoin ETFs in uncertain financial times.

Source: SoSo Value

Bitcoin Holds Firm Above $106,000

Despite it all, there have been moments of surprising strength in the price of Bitcoin. The cryptocurrency leapt far beyond $106,000.  A 4.1% over the last 24hours to trade at $106,155. The action implied that retail appetite remained resilient, even as institutional flows turned negative.

Also Read: Bitfinex Whale Buys 300 BTC Daily Using TWAP Strategy Amid Market Crash

Analysts are stated that this trend does not imply bearish for the rest of the year. Instead, they call it a consolidation phase after weeks of gains. Many investors are cashing out recent gains and waiting for clearer signals from the economy.

Global economic factors are also causing the caution. Persistent inflation and interest rate hikes by central banks have depressant risk appetite. Geopolitical tensions in various parts of the world are continuing to add pressure and pushing investors to safer assets. These compound elements have left an atmosphere of hesitancy in global markets.

Bitcoin Rally Stalls as ETF Inflows Decline

Analysts from Bitfinex said that Bitcoin’s previous rally toward $125,000 in early October was heavily dependent on ETF inflows. When macroeconomic conditions took a turn for the worse, and there was more profit-taking, the move lost momentum. They added that some recovery in inflows above $1 billion per week could see a return in upward movement if world conditions stabilise.

The recent drop follows similar trends seen in the summer in the past. In June, two straight weeks of ETF outflows led to the loss of the $100,000 market. This time, the cryptocurrency was able to break above the psychological level and this indicates a greater market resilience. However, the magnitude of withdrawals still suggests uncertainty on the part of institutional investors.

Ethereum followed a similar path at the same time. ETH spot ETFs had experienced outflows of $508.2 million during the week ending November 7. Ethereum hit a November 4 low of $3,058 before making a comeback back over $3,400. It currently trades at $3,605 which is a 5.98% increase over the last 24 hours.

The crypto market is still in a state of tepid optimism. While short-term sentiment is defensive, experts say the larger picture will rely on macroeconomic relief and renewed institutional participation. This future for Bitcoin will probably depend on whether or not confidence and capital can reflow into ETFs in the coming weeks.

Also Read: Ethereum Recovers Above $3,300, Analysts Eye $6,000 Price Target