Bitcoin ETFs Bleed $867M In Second-Largest Outflow Ever As ‘Extreme Fear’ Grips Crypto
US spot Bitcoin ETFs (exchange-traded funds) saw $867 million in outflows yesterday, their second-largest on record, as “extreme fear” swept through the crypto market and Bitcoin slipped below $97k.
A broad market selloff erased more than 5% from the crypto market’s capitalization in the past 24 hours, with Bitcoin falling below the psychologically important $100k level to trade at $96,976 as of 5:33 a.m. EST, according to CoinMarketCap.
US Spot Bitcoin ETFs Suffer Second-Largest Outflows On Record
The ETF outflows seen in the latest trading session were the second-largest on record for the funds since their launch last year. The largest was seen on Feb. 25, when investors pulled $1.14 billion from the investment products in a single day.
During yesterday’s trading session, Grayscale’s BTC fund saw the biggest negative flows after $318.2 million left its reserves, according to Farside Investors data.
US spot BTC ETF flows (Source: Farside Investors)
BlackRock’s IBIT suffered the next-biggest outflows with $256.6 million being withdrawn from the fund. Fidelity’s FBTC came in third with $119.9 million outflows on the day.
Meanwhile, Bitwise’s BITB, Ark Invest’s ARKB, Invesco’s BTCO, Franklin Templeton’s EZBC, VanEck’s HODL, and Grayscale’s GBTC all saw outflows as well. Valkyrie’s HODL and WisdomTree’s BTCW were the only US spot Bitcoin ETFs to record no new flows during yesterday’s trading session.
With the latest outflows, the US spot Bitcoin ETFs are now on a two-day net daily outflows streak. In the last 48 hours, more than $1 billion has flowed out of the investment products.
Despite ‘Extreme Fear,’ Santiment Says It Might Be Time To Buy
The pullback comes as the Crypto Fear & Greed Index, a popular tool to gauge market sentiment, currently stands at a score of 16, indicating “extreme fear.”
The index climbed one point in the last 24 hours but has tumbled eight points from last week and 18 points from the “fear’ score seen a month ago.
Commenting on Bitcoin’s recent drop below $100K, on-chain intelligence firm Santiment noted that there has been a wave of FUD (fear, uncertainty, and doubt) and concerned social media posts from retail traders.
Given the “significant bearish/fearful bias” that has hit the market, Santiment says that BTC has entered a green zone. The firm said that this zone has historically presented investors with a low-risk opportunity to buy Bitcoin.
“Sentiment always plays a significant factor, and more often than not prices will move opposite to whatever the crowd’s majority narrative is on social media,” the firm said.
Anchorage Digital has taken the opportunity to buy the dip. In an X post earlier today, Lookonchain cited data from Arkham Intelligence that showed Anchorage Digital received 4,094 BTC worth $405 million from Coinbase, Cumberland, Galaxy Digital, and Wintermute.
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