Spot bitcoin exchange-traded funds in the U.S. reported their second consecutive day of net outflows on Wednesday, despite a broader crypto market rally driven by peace talks between the U.S. and Iran.
According to data from Farside, the spot bitcoin ETFs posted $93.9 million in net inflows yesterday. Fidelity's FBTC recorded the largest outflows for the day, worth $79 million, followed by $74.7 million from Ark & 21Shares' ARKB. Grayscale's GBTC also posted $11 million in outflows.
On the other hand, BlackRock's IBIT saw positive flows worth $40.4 million on Wednesday. Notably, Morgan Stanley's newly debuted MSBT reported $30.6 million in net inflows on its debut, with about $34 million in trading volume for the day.
Yesterday's total net outflows coincided with a notable rally in crypto prices following a White House announcement that the U.S. and Iran have reached a two-week ceasefire agreement. Bitcoin (BTC) rose from around $67,800 to roughly $71,000, The Block's bitcoin price page shows.
"Crypto ETFs saw outflows once traders realized that the ceasefire was far from a done deal," said Jeff Mei, COO of BTSE. "Israel continued to bomb Lebanon, and the Saudi pipeline was bombed by a drone. Under these circumstances, it's highly unlikely that oil flows through the Strait of Hormuz will resume that quickly."
LVRG Research Director Nick Ruck also said that institutions appear to take profits rather than join the momentum, after aggressively buying the dip earlier in the week.
As investor concerns surrounding the fragile peacemaking process in the Middle East persist, the market sentiment is expected to remain in the fear zone, analysts said.
"Traders are in Extreme Fear territory, as conflicting ceasefire chatter continues to spark sharp, sudden risk-off sentiment, and until long-term agreements are settled, confidence will stay sidelined," said Dominick John, analyst at Zeus Research.
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