Bitcoin (BTC) exchange-traded funds (ETFs) in the United States reported outflows of more than $43 million yesterday, breaking a streak of two consecutive days of net capital inflows.
According to data from the investment company SosoValueArk & 21Shares’ ARK 21Shares Bitcoin ETF (ARKB) saw outflows of $54 million, while Grayscale’s Grayscale Bitcoin Trust (GBTC) saw outflows of over $4 million.
BlackRock’s iShares Bitcoin Trust (IBIT) again recorded zero net daily inflows and has not experienced any net inflows since August 26. This is the largest BTC fund in the world.
Since their launch on the market, the 12 ETFs in the United States backed by bitcoin They had net cash inflows of $17 billion.
Money inflows and outflows in BTC ETFs. Source: SosoValue.
Due to the way they work, the companies that manage the funds must back and hold BTC in their treasuries to support the shares. That is why their good performance has a direct impact on the asset’s price.
However, if there is an outflow of capital from ETFs, the companies that manage them could sell the surplus BTC. This increases or decreases the amount of assets available on the market, which can lead to an increase or decrease in the price of BTC.
However, the release of US inflation figures helped to mitigate the impact of the downward pressure caused by capital outflows in bitcoin funds.
The price of the digital currency created by Satoshi Nakamoto remained mostly above $58,000. Currently, the price of BTC is $57,960.
BTC price so far in 2024. Source: TradingView.
As reported by CriptoNoticias, the index of prices consumer price index (CPI) in that country was 0.25% in August compared to the previous month. Inflation over the past year is 2.5%, the lowest figure since February 2021.
The cooling of inflation increases the expectations of those who believe that the Federal Reserve of that country (Fed) will cut the interest ratewill be announced on September 18th.
A decrease in the interest rate This will cause Treasury bond yields to fall. This is when investors’ appetite for speculation increases and they look for more attractive instruments that give higher returns, even if they are more exposed to price fluctuations such as stocks, BTC or cryptocurrencies.
The expectation of a low interest rate and BTC’s ability to move independently of traditional markets They explain the reasons why the asset price remained above $58,000.
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