Bitcoin ETFs Suffer Largest Outflows Since June Amid Stagnant Price

Bitcoin spot exchange-traded funds (ETFs) saw their largest outflows in six weeks, reversing a strong start to August. The 13 US-listed funds experienced a net drain of $389.7 million in the week of Aug 10, following inflows of $853.5 million the previous week.

The outflows come as Bitcoin's price stagnates around $63,000, down about 50% from its record high reached in October last year. The risk of higher interest rates is keeping sentiment cautious, while a lack of legislative progress on the proposed Clarity Act, a crypto market structure bill, is also pushing buyers to the sidelines.

Esme Pau, head of capital markets and policy at blockchain security firm CertiK, said 'Last week's ETF net outflows reflect the subdued mood in the Bitcoin market.' The recent hack of Coldcard-branded offline wallets made by Toronto-based Coinkite has shaken faith in a type of wallet meant to be one of the safest places for investors to secure their crypto.

The Bitcoin implied volatility index, which uses options prices to anticipate 30-day swings in the token, was around 37 on Monday, below its average for the year and well under its peak in early February. This suggests that institutional demand remains fragile.