Bitcoin ETFs lose $1.16B as Bitwise calls selling ‘short-term’
Bitwise’s André Dragosch attributed Bitcoin ETF outflows to weaker market sentiment, saying institutions have largely maintained their exposure.
Over a span of three trading days, US spot Bitcoin exchange-traded funds (ETFs) experienced a net outflow of more than $1 billion, with Bitwise, a crypto asset manager, attributing the withdrawals to a short-term risk-off environment rather than a lasting retreat by institutional investors. The recent outflow of $116 million, bringing the total since Friday to $1.16 billion, was attributed by Bitwise's head of research, André Dragosch, to weaker market sentiment following Binance's $6.3 billion hack on Thursday.
Dragosch emphasized that the outflows were not due to concerns over the safety of ETF holdings, as recent Bitwise surveys revealed that none of the 15 institutions surveyed had reduced their Bitcoin ETF exposure during the bear market. The Crypto Fear & Greed Index, which measures market sentiment, rose to 34 from 26 on Monday, though it remained in the "Fear" category.
Despite the outflows, institutional investors, excluding hedge funds, continued to maintain their positions according to US regulatory filings.
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