scorecardresearchMystery around $500 million flight from Bitcoin ETF: Report

Mystery around $500 million flight from Bitcoin ETF: Report

Updated: 23 Jun 2022, 09:17 AM IST
TL;DR.

The withdrawals from the Purpose Bitcoin ETF equalled about 24,510 Bitcoin, or around 51% of its asset under management

Bitcoin tumbled as much as 15% to $17,599 on Saturday, the lowest level since late 2020.

Bitcoin tumbled as much as 15% to $17,599 on Saturday, the lowest level since late 2020.

First Bitcoin exchange-traded fund in North America is at the centre of a crypto-market guessing game after it saw record one-day outflows of $500 million last week, Bloomberg reported.

The withdrawals from the Purpose Bitcoin ETF equalled about 24,510 Bitcoin, or around 51% of its asset under management on Friday, according to data compiled by Bloomberg and analysts.

“Obviously, this one was more of a larger outflow in this case, and, to me, this is more of a reflection of investors’ views on the market,” said Vlad Tasevski, COO at Purpose Investments.

He added that the company does not have direct visibility into who’s doing the trades given how the ETF's structure works. “Even if we knew, typically we don’t actually comment on what our clients are doing.”

The selling came as the crypto market went through an intense selloff that carried into the weekend. Bitcoin tumbled as much as 15% to $17,599 on Saturday, the lowest level since late 2020.

It is down about 70% from its record high in November. The fund debuted in February 2021.

 

First Published: 23 Jun 2022, 09:17 AM IST