The inflows into 11 new bitcoin exchange traded funds that received US regulatory approval in January went into reverse this week. Investors will be watching daily data to see if the $850mn that leaked out of the ETFs was a blip, or a harbinger of a bigger pullback for the world’s biggest cryptocurrency.
The flows had helped propel the price of the cryptocurrency to a record high of $73,000 this year. But a pullback in its price in recent days has hit investor enthusiasm for the ETFs. At one point this week, bitcoin fell as low as $60,760.
“People have looked at how much the price of bitcoin has fallen and they’ve decided to hold off, nobody wants to catch a falling knife,” said James Butterfill, head of research at crypto investment group CoinShares.