【Blockchain Rhythm】In the first two trading days before the New Year, Bitcoin ETFs performed remarkably well, with net capital inflows exceeding $1 billion, once filling the market with optimistic expectations. Investors’ risk appetite seems to be on the rise.
However, the good times didn’t last long. Over the following three trading days, Bitcoin ETFs experienced consecutive net outflows, totaling $1.128 billion. What does this mean? The $1.16 billion net inflow at the beginning of the year was almost completely offset. From the data, the capital flow of Bitcoin ETFs from the start of the year to now has been basically flat.
This turning point is worth pondering. The initial hot money influx seems to have encountered some resistance. It could be valuation pressure or risk warnings. In any case, institutional investors’ confidence is waning. Those optimistic voices that fueled the market at the beginning of the month are now cooled by the reality of asset performance.
Next, two variables to watch are: the upcoming US employment data, which usually shakes market sentiment; and the related Supreme Court rulings, which could also trigger chain reactions. These factors combined may increase market volatility before and after the weekend. Investors need to be prepared.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Bitcoin ETF starts the year with a cold reception: $1 billion net inflow wiped out in three days, institutional confidence wanes
【Blockchain Rhythm】In the first two trading days before the New Year, Bitcoin ETFs performed remarkably well, with net capital inflows exceeding $1 billion, once filling the market with optimistic expectations. Investors’ risk appetite seems to be on the rise.
However, the good times didn’t last long. Over the following three trading days, Bitcoin ETFs experienced consecutive net outflows, totaling $1.128 billion. What does this mean? The $1.16 billion net inflow at the beginning of the year was almost completely offset. From the data, the capital flow of Bitcoin ETFs from the start of the year to now has been basically flat.
This turning point is worth pondering. The initial hot money influx seems to have encountered some resistance. It could be valuation pressure or risk warnings. In any case, institutional investors’ confidence is waning. Those optimistic voices that fueled the market at the beginning of the month are now cooled by the reality of asset performance.
Next, two variables to watch are: the upcoming US employment data, which usually shakes market sentiment; and the related Supreme Court rulings, which could also trigger chain reactions. These factors combined may increase market volatility before and after the weekend. Investors need to be prepared.