Recent data indicates a notable departure from the fervent demand that drove Bitcoin to its peak, with Exchange-Traded Funds (ETFs) witnessing a withdrawal totaling $742 million between Monday and Wednesday. This withdrawal signals substantial outflows from the Grayscale Bitcoin Trust, accompanied by reduced investments in competing funds from major entities such as BlackRock and Fidelity Investments.
Despite this downturn, Bloomberg data reveals that ETFs have accumulated $11.4 billion in net investments since their inception, establishing them as one of the most successful ETF launches to date. However, the Grayscale Bitcoin Trust, now restructured as an ETF, has reported significant outflows amounting to $13.3 billion.
While global stocks and gold maintain an upward trajectory, Bitcoin’s recent surge has tapered off in response to the ETF outflows. Nevertheless, Bitcoin experienced a resurgence of over 5% today, propelled by indications from the Federal Reserve suggesting potential interest rate cuts, which bolstered various asset classes.
Noteworthy gains were also observed in the stock prices of Bitcoin-related companies today, following a week-long downturn. MicroStrategy, the largest holder of BTC, saw a 15% increase in its share price, while leading BTC mining companies such as Marathon Digital and Riot Platforms also witnessed a modest recovery in their stocks, aligned with Bitcoin’s rebound.
