Bitcoin ETP Outflows Spell Bearish Sentiment Among Institutional Investors
May 05 2022 - 06:00PM
NEWSBTC
Bitcoin ETPs have become more popular than ever since the SEC
approved multiple bitcoin ETPs in the fourth quarter of 2021. They
had subsequently had a good run with hundreds of millions of
dollars flowing into these ETPs. They provided a way for
institutional investors and others who didn’t want any direct
exposure to the digital asset to trade on it. However, it seems the
wind is starting to change as outflows become the order of the day.
Outflows Rock Bitcoin ETPs The market is still reeling from
entering a new month but the effects of the month of April continue
to linger. Being a historically bearish month for the digital
asset, bitcoin had taken a bit of a beating down in the market,
which had unsurprisingly translated into the ETPs. Related Reading
| Bitcoin Institutional Outflows Near One-Year Highs, More
Downside Coming? The result of this was outflows that rocked the
market. April sticking to form had recorded the highest monthly net
outflows ever recorded in the history of Bitcoin ETPs. In total,
there was a total of 14,327 BTC that flowed out of the market in
this dreadful month. This, in turn, had caused the total asset
under management (AUM) of the digital asset to decline drastically
that by the end of the month, there were only 187,000 BTC in AUM.
It is obviously the worst month for the ETPs since they became a
thing. The US and Canadian bitcoin ETPs were not spared of the
onslaught either. In the US markets, a total of 3,312 BTC had
flowed out of the ETFs, while their Canadian counterparts saw an
even worse trend with 7,100 leaving BTC ETPs. This translated to a
10% decline in BTC AUM in the North American country.
Outflows rock BTC ETPs | Source: Arcane Research It is important to
note that all US outflows had been recorded in the BITO. Exposure
to bitcoin of US ETFs also declined significantly in the month of
April. It now sits 11% less than where it used to in the previous
month. In Europe, it was the same trend as its American
counterparts. The region which had been battling outflows for the
better part of a year saw 3,974 BTC leave the market at the same
time. April had helped to mark 10 months out of 16 months that
European ETPs had been rocked by outflows. BTC trading in the
mid-$39,000s | Source: BTCUSD on TradingView.com Brazil was the
only country spared from the bleeding month of April. It had
recorded inflows but these were minor and by comparison, remain
quite small when put into the global context. Related Reading
| Dogecoin Price Could Plunge To $0.11 Owing To A Consistent
Downslide These outflows that were recorded in the month of April
had successfully erased all of the gains that had been made by ETPs
in the month of March. However, there is good news amidst this sea
of bad news. Australia is getting ready to start trading crypto
ETFs. It has been announced that one of these ETFs will offer
direct exposure to bitcoin. Others will only hold Canadian BTC
ETFs, which, in the long run, may prove to be very profitable for
the Canadian crypto ETPs. Featured image from Nikkei Asia, charts
from Arcane Research and TradingView.com
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