Analysts at the crypto exchange Bitfinex evaluated the current situation of spot Bitcoin exchange-traded funds (ETFs).
Last week, data indicating outflows from spot Bitcoin ETFs led to a decline in the cryptocurrency market. Grayscale’s GBTC fund was at the forefront of these outflows.
However, spot Bitcoin ETFs made a strong start to the week, adding momentum to the market’s upward trend.
Bitfinex analysts stated that the perception of “significant outflows from spot Bitcoin ETFs” last week was inaccurate, as these outflows were limited to GBTC, and money flow was continuing healthily.
The analysts attributed this selling pressure specific to GBTC to high transaction fees and profit-taking investors:
We also do not see the entry into spot Bitcoin ETFs as a worrisome reason. While negative ETF outflows dominated last week, these were all from Grayscale Bitcoin Trust (GBTC). Investors are giving up on GBTC due to the high fees it charges, as well as booking profits in the process.
