Bitcoin (BTC) spot exchange-traded funds (ETFs) had another bad week. Even though the Bitcoin halving took place last night, crypto market sentiment is not yet at a high level. Investors are cautious amid tensions in the Middle East, and that has led to a new negative record for stock market funds.
Second negative BTC ETF week in a row
Last week saw significant capital flight from Bitcoin spot ETFs launched in January. Overall, funds shrank by $204.3 million, data from Farside Investors shows. It’s the third-worst trading week for the funds since their mass launch on January 11.
In addition, the funds closed two consecutive weeks in the red for the first time since their stock market debut. Last week, a total of $82.5 million flowed out of the ETFs.
For the second time ever, money was withdrawn from the funds on five consecutive trading days. Last Friday ended as negatively as the first four trading days of this week. The negative streak was broken last Friday with net inflows of $59.7 million.
Notably, Grayscale’s GBTC fund had one of its best weeks yet, with net outflows totaling $458.4 million. However, the other funds, including BlackRock and Fidelity, had an exceptionally bad week.
Negative crypto sentiment despite Bitcoin halving
Bitcoin ETFs have been in a down phase for five weeks. The lower cash flows are logically accompanied by a general decline in market sentiment.
Bitcoin price has had significant problems in recent weeks, largely due to higher-than-expected inflation rates in the United States and the worrying situation in the Middle East.
Even the Bitcoin halving has not yet led to optimism in the crypto market. In previous cycles, Bitcoin has entered a massive bull market a few months after its halving, giving many crypto investors hope.
Of course, there is no guarantee that history will repeat itself. However, it is a fact that the Bitcoin halving reduced BTC inflation. Since yesterday evening, only around 450 Bitcoins have been put into circulation every day, instead of the previous 900.
