Bitcoin ETF Outflows Continue As Crypto Prices Sink

Exchange-traded funds (ETFs) that track the spot price of Bitcoin (CRYPTO: $BTC) continue to experience steady outflows as prices for cryptocurrencies remain under pressure. 

About a dozen U.S. spot Bitcoin ETFs lost $95 million U.S. on Nov. 10, according to market data. That extends the streak of outflows to four consecutive days. 

BlackRock’s (NYSE: $BLK) leading iShares Bitcoin Trust (NASDAQ: $IBIT) accounted for $78 million U.S. of the outflows seen on Nov. 10. 

Since the start of November, the spot Bitcoin ETFs have lost a combined total of $1.57 billion U.S. as crypto prices have steadily sunk. 

Analysts blame the steady outflows on several factors. 

Outflows from Bitcoin ETFs have accelerated since crypto exchange Binance announced on Oct. 30 that it had a record $6.3 billion U.S. stolen from its platform in a major hack. 

The Binance incident has shaken investor confidence in digital assets, say analysts. 

At the same time, crypto prices have declined alongside technology stocks in recent weeks, particularly ones tied to the artificial intelligence (A.I.) infrastructure buildout. 

And crypto is sinking as expectations rise for further interest rate hikes from the U.S. Federal Reserve.   

Financial markets are now pricing in a 100% chance that the U.S. central bank raises interest rates 25 basis points at its Dec. 9 policy meeting following a hot inflation report for October. 

Higher interest rates are typically a negative for risk assets such as Bitcoin and other cryptocurrencies like Ethereum (CRYPTO: $ETH). 

Since peaking at $86,000 U.S. in early October, Bitcoin’s price has declined to currently trade at $73,750 U.S.