Bitcoin ETFs Bounce Back After a Rough Week
October 21, 2023 - Bitcoin ETFs experienced a significant rebound, ending a four-day streak of losses exceeding $1.2 billion. The day saw inflows of $477.2 million, the largest single-day gain in two weeks.
Top Performers
- BlackRock’s IBIT: $210.9 million
- ARK Invest’s ARKB: $162.9 million
- Fidelity’s FBTC: $34.1 million
Smaller funds like Franklin’s EZBC and Invesco’s BTCO also saw positive inflows, while Grayscale’s GBTC continued to lose money.
Previous Week’s Performance
From October 15 to 20, Bitcoin ETFs faced substantial outflows, losing up to $530 million in a single day. Major ETFs like IBIT and FBTC experienced rare back-to-back outflows, and GBTC sustained continuous losses. The total loss for the week reached $1 billion, marking one of the worst streaks since April.
Market Stability
Despite the inflows, Bitcoin’s price remained stable around $108,600, with minimal fluctuations of 1%. The market showed no significant trading activity or funding rate changes, indicating a calm accumulation phase often seen when large investors gradually build their positions.
Industry Insights
The top ETFs, IBIT and ARKB, accounted for nearly 80% of Monday’s inflows, highlighting their dominant influence on the market. Meanwhile, GBTC continues to trade below its net asset value, reflecting ongoing challenges since its transition from a trust to an ETF.
Future Outlook
This rebound could signal a fresh start for Bitcoin ETFs. With easing US interest rates and diminishing inflation concerns, riskier assets like Bitcoin are regaining investor interest. Sustained inflows might indicate the bottom of the current ETF cycle, potentially setting a stronger foundation for Bitcoin’s next move within its $107,000 to $113,000 range.