- US spot Bitcoin ETFs recorded US$907.4 million in net outflows over two weeks, although weekly withdrawals slowed from US$679 million to US$228.4 million.
- BlackRock’s IBIT and Fidelity’s FBTC led Friday’s US$82.4 million in net outflows, extending the funds’ recent weakness.
- Higher-than-expected US inflation of 3.7% raised concerns about persistent price pressures and the outlook for interest rates.
- Bitwise CIO Matt Hougan remains bullish on Bitcoin’s long-term prospects despite macroeconomic risks, while BTC recovered to around US$82,619.
US spot Bitcoin ETFs have seen large net outflows over the past two weeks. With six days of net outflows and four days of net inflows, a total of US$907.4 million (AU$1.3 billion) has exited the funds. On Friday, US$82.4 million (AU$118.2 million) in net outflows closed the week in the red.
That marks a slowdown from the previous week, when US$679 million (AU$973.6 million) left the funds, compared with last week’s US$228.4 million (AU$327.5 million). BlackRock’s iShares Bitcoin Trust (IBIT) accounted for US$71.8 million (AU$103 million) of Friday’s withdrawals, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) recorded another US$10.6 million (AU$15.2 million) in net outflows.
Interestingly, Wednesday saw US$261.4 million (AU$374.8 million) in net outflows, the same day US inflation figures were released.
The print came in hotter than expected and showed a 3.7% price rise year-on-year, up from 3.4% in August. The worry now is that, amid the ongoing energy crisis and the conflicts in the Middle East and Ukraine, inflation could remain elevated.
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Where to From Here?
Despite the recent outflows, Bitwise’s chief investment officer, Matt Hougan, remains optimistic about Bitcoin’s long-term prospects, saying “every path ultimately ends with bitcoin higher”.
Whether the AI bubble bursts or delivers “superabundance”, Hougan still thinks the outcome will be good for Bitcoin. He also sees opportunities for Bitcoin whether the Fed hikes rates or inflation remains elevated, though he admits BTC may not go up in a straight line.
He also acknowledges threats from quantum computing, a government-orchestrated crackdown on BTC or even governments returning to “sound management of their currencies”.
Hougan believes the probabilities here are low, which is why he’s long-term bullish on the OG coin.
But for long-term investors, the big macro questions matter less than most people think. That’s because, of all the different paths the economy can take, virtually all of them still lead to bitcoin.
Matt Hougan, Bitwise’s chief investment officer Meanwhile, Bitcoin has struggled to recover from last week’s sell-off and has not found its bearings.
On Friday, BTC slipped as low as US$80,116 (AU$114,865), as data from CoinGecko shows. It managed to hit a high of US$82,156 (AU$117,790) during late trading on Sunday Australian time, before retreating close to the US$80K (AU$115K) mark and rallying back to US$82,619 (AU$118,461) at the time of writing.
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