Bitcoin ETFs See $430 Million Of Outflows As U.S. Market Plunges
Exchange-traded funds (ETFs) that track the spot price of Bitcoin (CRYPTO: $BTC) experienced $430 million U.S. of outflows on Nov. 5 as equity markets melted down.
The heavy outflows were led by leading Bitcoin ETFs managed by Fidelity Investments and BlackRock (NYSE: $BLK).
Investors pulled money from the ETFs as Bitcoin’s price fell more than 5% to $75,000 U.S., its lowest level in nearly three months.
Digital assets came under renewed pressure as the U.S. stock market experienced a severe plunge due to rising concerns about the durability of the artificial intelligence (A.I.) trade.
The blue-chip Dow Jones Industrial Average fell more than 1,800 points on the day and the technology-laden Nasdaq Composite index dropped 5.5% to enter a correction.
The market meltdown has placed additional pressure on digital assets that were already struggling after the $6.3 billion U.S. theft at cryptocurrency exchange Binance.
In the week ended Nov. 5, about a dozen U.S.-listed Bitcoin ETFs saw cumulative outflows of $869.8 million U.S.
Many investors, particularly large institutions such as hedge funds, began pulling money from Bitcoin ETFs after the Binance hack was disclosed.
Some analysts say they expect the outflows from Bitcoin ETFs to continue in the near-term as market volatility persists and investors look for direction.
Year-to-date, Bitcoin’s price is down 13%.
This story was originally published by CryptoProwl. Read the original article.
