ETF Outflows Hit Bitcoin Spot Funds Amid Macro Uncertainty
Bitcoin spot exchange-traded funds (ETFs) saw a significant outflow of $385 million last week, but the price of Bitcoin held steady around $64,000. This comes after investors pulled funds from major spot bitcoin ETFs following a bullish run in early August.
The reversal in fund flows was notable, as the previous week had seen fresh money flow into the ETFs each day, with weekly inflows topping $865 million, the biggest weekly inflow since April.
Despite the outflows, Bitcoin prices remained relatively calm, with no significant moves over the past week and 30 days. The trend change is attributed to weakening investor sentiment, which was exacerbated by Middle East tensions flaring again.
The macro environment also played a role in the outflows, as concerns about inflation picking up again weighed on risk assets. A prolonged war between the United States and Iran and rising oil prices may limit upside across risk assets if the situation continues.