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Together, the negative capital flow from the Bitcoin ETF was USD 140 million.
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Cash ETFs directly impact the price of the underlying asset.
The Bitcoin cash ETF (BTC) in the United States recorded yesterday, February 6, a decrease in their flow of money, which influenced the fall in the price of digital asset.
These funds, issued in January 2024, They reported capital outputs for a total of 140 million dollarsaccording to Sosovalue data.
Capital outputs exclusively affected two ETF: Fidelity Wise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Trust (GBTC). FBTC reported a withdrawal of 103.2 million dollars, while GBTC registered an output of 42.2 million dollars.
The only financial instrument that registered capital tickets was Grayscale Bitcoin Mini Trust ETF (BTC), with 5.2 million dollars. The rest of the funds that quote on the American Stock Exchange It remained unchanged, without entries or capital exits.
The role of ETFs in Bitcoin’s offer
The capital exit of these funds had an immediate effect on Bitcoin’s price, which It went from $ 99,000 to $ 95,700.
However, on the current day, The digital currency shows a slight recovery and reached $ 97,900as can be seen in the TrainingView graph.
Due to the operation of the ETFs in cash, which are backed by the underlying asset, the ETF Al cash managing companies must buy and maintain Bitcoin in their treasury to support their actions.
However, by selling part of their Bitcoin holdings to cover the outputs of investors, they increase the supply of currency in the market. This increase in supply, without equivalent demand, generated a bearish pressure on the price of the asset.
Despite the drop recorded yesterday, the accumulated balance of Bitcoin ETFs in the United States remains on the rise. Currently, these funds manage a total of $ 40,530 million in assetswhich reflects the growing interest of investors in this kind of financial assets.