Btc Etf Outflows Are 'tactical Rebalancing,' Not Institutional...

The outflows reflect short-term price movements, not lower institutional demand or structural issues in the Bitcoin market, analysts said.

The record outflows from Bitcoin exchange-traded funds (ETFs) represent short-term, “tactical” rebalancing rather than institutional flight from BTC, according to analysts at crypto exchange Bitfinex.

Long-term Bitcoin (BTC) holders taking profit and selling their coins, and highly-leveraged positions flushing out of the markets, are the root causes of the billions of dollars in ETF outflows and the broader market crash, Bitfinex analysts said.

The uncertainty of a December interest rate cut has also shifted investors to a risk-off outlook, Bitfinex said.

Bitfinex said the structural thesis for Bitcoin remains “firm,” and that Bitcoin is positioned for continued institutional adoption as a store-of-value asset with strong long-term fundamentals. The ongoing drawdown is a short-term price movement, they added.

Related: BlackRock leads near $3B Bitcoin November ETF exodus with record $523M outflows

Bitcoin ETF outflows have topped $3.7 billion in November, as losses from October’s crypto market crash extended into the month, sparking investor fears of the beginning of a bear market.

BlackRock’s iShares Bitcoin Trust (IBIT) ETF led the outflows, with over $2.47 billion in redemptions so far in November.

The Bitcoin ETFs posted some of the worst daily outflows on record in November. Single-day outflows crossed $900 million on Thursday, according to Farside Investors.

The average ETF investor is now underwater following BTC’s crash below $90,000. However, this does not mean that ETF investors will panic sell, Vincent Liu, chief investment officer at quantitative trading company Kronos Research, told Cointelegraph.

Source: CoinTelegraph