Crypto ETFs: Bitcoin Inflows Streak Ends With $263M Outflow, BTC Price To Drop?

Key Insights:

• Crypto ETFs registered massive outflows at the beginning of this week.
• Bitcoin ETFs started the week with $263 million outflows, reversing the trend of inflows.
• BTC price now hinges on critical support levels as geopolitical tensions rise.

The first significant reversal in the crypto ETFs market following several days of inflows came on April 27.

Bitcoin ETF net outflows surpassed $263 million on Monday. This exodus follows a strong institutional buying spree and falls at a time of consolidation for the BTC price.

A Look At Crypto ETFs Inflow Data

The previous days had seen generally strong inflows with crypto ETFs attracting an influx of $1.2 billion last week. At the same time, Bitcoin ETF inflows on April 20 hit $238.4 million and on April 21, $11.8 million.

The pace of inflows picked up again on April 22 with a $335.8 million influx and continued on April 23. However, crypto ETFs lost momentum as Monday saw massive outflows.

Bitcoin Crypto ETF Reverses Course

Farside Investors crypto ETFs data reveal that the outflows were concentrated within a few funds. Fidelity’s FBTC saw the largest withdrawal with $150 million outflows, which represented over 50% of the outflows.

The Grayscale Bitcoin Trust (GBTC) saw approximately $47 million in outflows. It is consistent with the longer-term trend of outflows for the GBTC Bitcoin ETF.

In addition, the ARK 21Shares Bitcoin ETF (ARKB) also recorded some $43 million in outflows. Other large crypto ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), exhibited subdued flat flows. This marked the end of inflows for IBIT too, which has consistently boasted billions in capital influx.

Similarly, Ethereum-related crypto ETFs showed similar signs of weakness. Spot Ethereum ETFs experienced roughly $50.4 million in net outflows on April 27.

The outflow comes mostly due to a lack of confidence amid rising geopolitical tensions as the US-Iran conflict continues. Earlier, last week, the U.S. Ethereum ETF registered mixed action with both inflows and outflows on different trading days.

Analyst Says BTC Price Risks Major Downturn

Popular analysts are also tracking indicators of demand other than crypto ETFs. Crypto analyst Ted Pillows noted a change in the Coinbase premium.

On X, he wrote, “Coinbase Bitcoin Premium has now flipped negative.” He continued, “Last time this happened, $BTC dropped 15% in 2 weeks.”

The indicator measures the BTC price difference between U.S. exchange Coinbase and offshore exchanges. It is, thus, viewed as an indicator of institutional interest.

The order book also highlights significant liquidity levels that will influence Bitcoin’s short-term price movements. Pillows pointed out, “BTC has strong buy orders around the $75,000–$75,500 level.”

Hence, this zone acts as a major support for the Bitcoin price, and if it breaks, a downside could be imminent. At press time, the BTC price was barely holding above $76,000 with an intraday loss of 1.02%.

On the upside, he added that there were “large sell orders around the $79,000–$80,000 level.” It represents a critical resistance band that Bitcoin price has to break through to achieve further uptrend.

Amid the crypto ETFs outflow, Pillows also cautioned of a potential bid gap below the current price level. He wrote, “If BTC loses $75,000 level, there isn’t much demand until $70,000.” So, if Bitcoin price breaks down, the next support lies at $70,000.