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Bitcoin

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April

The latest report from CoinShares shows that there were minor outflows from institutional crypto investment products over the past seven days.
According to CoinShares’ “Digital Asset Fund Flows Weekly” report <a href="https://blog.coinshares.com/volume-178-digital-asset-fund-flows-weekly-report-02e978e7d82e" target="_blank" rel="noopener noreferrer nofollow">published</a> on April 15, institutional investors reduced exposure to digital assets, with total crypto investment products seeing total outflows of $126 million this past week.
Once again, the lion’s share of movement was attributed to Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>), with $110 million in outflows.
CoinShares explained that this outflow highlights “hesitancy among investors” since the positive momentum has worn off. For the month leading up to the recent wave of outflows, inflows of $520 million into crypto funds were seen, with more than 99% of that coming into <a href="https://cointelegraph.com/learn/what-is-bitcoin-a-beginners-guide-to-the-worlds-first-cryptocurrency#:~:text=Bitcoin%20is%20digital%20money%2C%20also,independently%20of%20any%20central%20authority." rel="noopener noreferrer nofollow">Bitcoin</a>.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/de34c297-edfe-4417-89d6-3bd7b42a299a.png">
 <figcaption style="text-align: center;">Capital flows for crypto investment products. Source: CoinShares
 </figcaption>
</figure>
Weekly trading volumes in investment products saw an uptick from $17 billion the previous week to $21 billion in the week ending April 12, according to the report.
CoinShares head of research James Butterfill said,
<blockquote>
 “ETP/ETF activity dropped relative to the overall market, from 40% of total volumes on trusted exchanges over the last month to 31% last week, demonstrating this caution among investors.”
</blockquote>
The data follows heavy selling amid <a href="https://cointelegraph.com/news/bitcoin-nose-dive-as-political-tensions-escalate-israel-iran-middle-east" rel="noopener noreferrer nofollow">geopolitical tensions </a>and uncertainties surrounding <a href="https://cointelegraph.com/news/bitcoin-price-weakens-after-hot-cpi-print-raises-doubt-on-fed-rate-cuts" rel="noopener noreferrer nofollow">Federal Reserve rate cuts in June</a>. Institutions withdrew nearly $82 million from spot Bitcoin trades ETFs between April 8 and April 12, as the exodus from Grayscale’s GBTC continued.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/2e1f0fff-91f1-4757-a2ba-bea203d5dcbe.png">
 <figcaption style="text-align: center;">Weekly inflows by institution. Source: CoinShares
 </figcaption>
</figure>
Regionally, only Australia, Brazil and Germany showed inflows, with $1.6 million, $3 million and $28.6 million incoming, respectively. The largest regional outflows came from the United States, with $145 million.
<h2 id="btc-price-drops-below-65-000-amid-spot-bitcoin-etf-approval-in-hong-kong">BTC price drops below $65,000 amid spot Bitcoin ETF approval in Hong Kong</h2>
While Bitcoin remains up on longer time frames, its price action has been defined by high volatility over the last few days.
Data from <a href="https://subscription.cointelegraph.com/?_gl=1*1qyt049*_ga*MTAxMzE3MDgyMS4xNzA2Nzk5MzMw*_ga_53R24TEEB1*MTcxMzE5ODUzNS4yODMuMS4xNzEzMTk5OTIxLjAuMC4w" rel="noopener noreferrer nofollow">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCGBP/?exchange=BINANCE" target="_blank" rel="noopener noreferrer nofollow">TradingView</a> shows that Bitcoin fell sharply at the Wall Street open on Monday from $66,008 to an intraday low of $63,940.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/388701ac-6b0a-47dc-8582-0e97a8dd047b.png">
 <figcaption style="text-align: center;">BTC/USD daily chart. Source: <a href="https://www.tradingview.com/x/zvY3xLeZ/" target="_blank" rel="noopener noreferrer nofollow">TradingView</a>
 </figcaption>
</figure>
Analysts at CryptoQuant <a href="https://cryptoquant.com/insights/quicktake/661d0873dee38c4ff569dd29-Why-is-there-still-a-high-probability-of-more-price-correction-in-Bitcoin?utm_source=twitter&amp;utm_medium=sns&amp;utm_campaign=quicktake&amp;utm_content=gaah" target="_blank" rel="noopener noreferrer nofollow">believe</a> there is still a high probability of more price correction for Bitcoin. This is supported by several factors, including high average 30-day funding rates, resistance from the current all-time high, and a market setup that allows “large players to set up large positions.”
Related: <a href="https://cointelegraph.com/news/70k-btc-price-by-the-halving-5-bitcoin-this-week" rel="noopener noreferrer nofollow">$70K BTC price by the halving? 5 things to know in Bitcoin this week</a>
CryptoQuant author Gaa said:
<blockquote>
 “Historically, when there are large Retail profit-taking moves, it means a potential top is in the making. After the rapid fall in prices over the last two days, there has been a significant outflow of realizations by these holders.”
</blockquote>
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/24fc8f61-4014-4fa5-9395-4fc64573b9d5.png">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/cryptoquant_com/status/1779865130898993336" target="_blank" rel="noopener noreferrer nofollow">CryptoQuant</a>
 </figcaption>
</figure>
The latest drawdown in BTC prices came after Hong Kong became the second country to <a href="https://cointelegraph.com/news/hong-kong-approves-bitcoin-ether-etfs" rel="noopener noreferrer nofollow">approve spot Bitcoin ETFs</a>. However, the Asian country has not launched these ETFs as most market participants expected, with possible trading likely to begin next week, according to Bloomberg ETF analyst Eric Balchunas.
Balchunas warned his followers not to “expect a lot of flows” from the HK spot Bitcoin ETFs as the market is small compared to the U.S. ETF sector.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/bbe558c3-7e73-4566-852b-07f20b71b7fd.png">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/EricBalchunas/status/1779869536822431900" target="_blank" rel="noopener noreferrer nofollow">Eric Balchunas</a>
 </figcaption>
</figure>
Reducing investor sentiment around HK spot Bitcoin ETFs, coupled with <a href="https://cointelegraph.com/news/paxos-gold-spiked-geopolitical-tension-bitcoin-hedge-questioned" rel="noopener noreferrer nofollow">geopolitical tensions in the Middle East</a>, are likely to pull BTC price lower until after the <a href="https://cointelegraph.com/news/bitcoin-halving-2024" rel="noopener noreferrer nofollow">Bitcoin supply halving</a>.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Crypto funds see $110M in Bitcoin outflows as BTC price drops and investors risk off

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