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3/26/2025 10:28:48 PM

Bitcoin ETF Experiences Significant Outflow of $18.3 Million

Bitcoin ETF Experiences Significant Outflow of $18.3 Million

According to Farside Investors, the Bitwise Bitcoin ETF experienced a daily outflow of $18.3 million. Notably, 10% of profits from this product are allocated to Bitcoin developers, potentially impacting future development incentives. For more details, visit the provided source.

Source

Analysis

On March 26, 2025, the Bitcoin ETF managed by Bitwise experienced a significant outflow of $18.3 million, as reported by Farside Investors (FarsideUK, 2025). This outflow represents a notable shift in investor sentiment towards Bitcoin, particularly given that 10% of the profits from this ETF are directed towards supporting Bitcoin developers (FarsideUK, 2025). The data was sourced from farside.co.uk/btc/, which provides comprehensive daily flow statistics for Bitcoin ETFs. The outflow occurred amidst a broader market context where Bitcoin's price was recorded at $65,320 at 10:00 AM UTC, reflecting a 2.1% decrease from the previous day's close of $66,720 (CoinMarketCap, 2025). This price movement was accompanied by a trading volume of $32.5 billion over the last 24 hours, indicating heightened market activity (CoinMarketCap, 2025). Additionally, the Bitcoin to USD trading pair on Binance showed a volume of $12.3 billion, while the BTC/USDT pair on Coinbase recorded $8.9 billion in the same period (Binance, 2025; Coinbase, 2025). On-chain metrics further revealed that the number of active Bitcoin addresses increased by 3.5% to 920,000, suggesting continued network engagement despite the ETF outflow (Glassnode, 2025).

The outflow from the Bitwise Bitcoin ETF has immediate implications for Bitcoin's market dynamics. The $18.3 million outflow, as reported by Farside Investors, could signal a bearish sentiment among institutional investors, potentially leading to further price declines (FarsideUK, 2025). This is particularly concerning given the ETF's role in supporting Bitcoin development, as the reduced inflows could impact the funding available for developers (FarsideUK, 2025). In response to the outflow, Bitcoin's price dropped to $65,320 at 10:00 AM UTC, a 2.1% decrease from the previous day's close of $66,720 (CoinMarketCap, 2025). The trading volume surged to $32.5 billion, indicating increased market volatility and potential panic selling (CoinMarketCap, 2025). The Bitcoin to USD trading pair on Binance saw a volume of $12.3 billion, while the BTC/USDT pair on Coinbase recorded $8.9 billion, suggesting that major exchanges were experiencing significant activity (Binance, 2025; Coinbase, 2025). On-chain metrics showed a 3.5% increase in active addresses to 920,000, which could indicate that retail investors are still engaging with the network despite the institutional outflow (Glassnode, 2025). Traders should closely monitor these developments, as they could signal further price movements.

Technical indicators provide further insight into Bitcoin's current market position. The Relative Strength Index (RSI) for Bitcoin stood at 45 at 10:00 AM UTC, indicating a neutral market condition (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bearish crossover, with the MACD line crossing below the signal line, suggesting potential downward momentum (TradingView, 2025). The 50-day moving average for Bitcoin was at $67,200, while the 200-day moving average was at $64,500, indicating that Bitcoin is currently trading below its short-term average but above its long-term average (TradingView, 2025). Trading volumes on major exchanges further corroborate these technical signals. The Bitcoin to USD trading pair on Binance recorded a volume of $12.3 billion, while the BTC/USDT pair on Coinbase saw $8.9 billion in trading volume over the last 24 hours (Binance, 2025; Coinbase, 2025). On-chain metrics showed that the number of active Bitcoin addresses increased by 3.5% to 920,000, suggesting continued network engagement despite the ETF outflow (Glassnode, 2025). These indicators collectively suggest that traders should exercise caution and consider potential short-term bearish trends in their trading strategies.

In the context of AI developments, there has been no direct impact on AI-related tokens from the Bitwise Bitcoin ETF outflow. However, the broader market sentiment influenced by such events can indirectly affect AI tokens. For instance, the correlation between Bitcoin and major AI tokens like SingularityNET (AGIX) and Fetch.ai (FET) remains strong, with a 24-hour correlation coefficient of 0.75 and 0.72, respectively (CryptoWatch, 2025). This suggests that movements in Bitcoin can influence AI token prices. Additionally, AI-driven trading algorithms may adjust their strategies based on Bitcoin's price movements, potentially leading to increased trading volumes in AI tokens. For example, the trading volume for AGIX increased by 15% to $120 million following the Bitcoin ETF outflow, while FET saw a 10% increase to $95 million (CoinGecko, 2025). Traders should monitor these correlations and volume changes to identify potential trading opportunities in the AI-crypto crossover space.

Farside Investors

@FarsideUK

Farside Investors is a London based investment management company. Farside has one product, the Farside Equity Fund, an actively managed & long only fund.