Spot ETFs linked to Bitcoin in the United States withdrew about $2.8 billion during 9 consecutive sessions between May 15 and 28, in the longest wave of outflows since the launch of these products in January 2024, according to what Bloomberg reported.
The withdrawals reflect the decline in investor appetite for the largest cryptocurrencies, even though these funds had opened the door for individuals and institutions to invest in Bitcoin through regulated financial instruments, and their flows turned into a major indicator for measuring demand for the currency.
Bitcoin traded near $73,650 on Friday morning in London, down more than 40% from its record level recorded in October, after failing to regain momentum since the sharp decline that hit the cryptocurrency market.
The funds’ losses went against the trend of global stock markets, as the S&P 500 and Nasdaq indexes recorded record levels in the United States, while the South Korean KOSPI and Japanese Topix indexes rose to new peaks.
Tony Sycamore, an analyst at IG Australia, said that Bitcoin had become “more isolated” from the rise in high-risk assets, adding that reports of the possibility of extending a truce in the Middle East for 60 days supported other risky assets, but did not give Bitcoin significant momentum.
Sycamore pointed out that US President Donald Trump’s posts supporting cryptocurrencies also did not provide tangible support for the market. (Al Jazeera Net)
