The crypto market witnessed a brutal sell-off on Monday following the FTX collapse, but a glimmer of hope emerged with slowing outflows from Bitcoin ETFs. This signals a potential shift in institutional sentiment towards the recovering asset class.
Reduced Outflows Hint at Rekindled Confidence
Net outflows from Bitcoin ETFs dropped from a staggering $237 million on Friday to a more manageable $168 million on Monday. This suggests that institutional investors, who heavily utilize ETFs for exposure, might be regaining some confidence in Bitcoin, currently up over 10% from its Monday lows.
Grayscale’s Mini-ETF Stands Out
However, the positive sentiment isn’t uniform across all Bitcoin ETFs. Grayscale’s Bitcoin Trust (GBTC) and other major players like Fidelity (FBTC) and Ark Invest (ARK) saw net outflows in the $60-$70 million range. Only Grayscale’s recently launched Bitcoin mini-ETF (BTC) defied the trend with inflows of $21 million.
Schiff Predicts Further Capitulation, But Others See Opportunity
Bitcoin critic Peter Schiff remains skeptical, warning that the current slowdown doesn’t mark the end of ETF capitulation. He believes a price drop below $38,000 would trigger mass liquidations from ETF buyers, pushing the price below $20,000. However, some investors see this as a buying opportunity, suggesting a potential clash of viewpoints in the coming days.
Broader Market Rebound Fuels Optimism
The entire crypto market mirrored Bitcoin’s upward trajectory. Ethereum jumped 8%, surpassing $2,500, with its corresponding ETF also attracting inflows. The positive momentum extended to the altcoin space, fueled by a strong recovery in Asian markets.
Also Read: Bitcoin ETFs To Unleash $Trillions – Institutional Money Floodgates Open
Institutions See a Buying Opportunity
The recent crash appears to be attracting institutional investment. London-based Capula Management’s revelation of a $500 million exposure to spot Bitcoin ETFs highlights this trend. This suggests that major players are interpreting the downturn as a chance to accumulate Bitcoin at a discount.
While the slowdown in ETF outflows is a welcome sign, the road to full recovery might be bumpy. Peter Schiff’s prediction of further capitulation cannot be entirely ignored. However, the broader market rally and institutional buying activity hint at potential upside in the near future. Only time will tell if the bulls or bears will prevail in this ongoing crypto saga.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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