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In a shocking development, the exchange traded funds (ETFs) market ended Monday with zero flows. Notably, this development occurred on a day full of hype that was expected to bring new cryptocurrency adoption to the US
Institutional withdrawal dampens BTC's momentum
Data from Farside Investors shows zero flows from all fund managers. Even leading fund managers such as BlackRock, Fidelity Investments and Bitwise did not register any interest from institutional investors.
This significant development seems to have influenced the position of market participants towards the leading digital asset.
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The ETF market closed Friday with $1.072 billion as institutional players settled ahead of the upcoming setup. BlackRock, Fidelity and Bitwise led the market performance with $375.9 million, $326.3 million and $208.1 million, respectively.
This prompted speculation that institutional interests would continue to rise as a new administration came on board in major US parastatals. However, the reality on the market has not been a reflection of the projection.
Bitcoin (BTC) hit an all-time high (ATH) of $109,114.88 a day before the setup and has been on a downward slope. As of this writing, BTC is changing hands at $103,759.10, which is a 4.18% decline in the last 24 hours. The trade volume has also fallen by 3.35% to $106.14 billion.
Impact on Bitcoin's future path
Analysts believe that this cautious approach by institutional players is likely to affect the upward movement of BTC. They argue that if the new US government does not make a clear policy statement on the Bitcoin Reserve, the enthusiasm may begin to wane.
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Such a situation could affect the predictions made by financial experts for the digital asset.
However, this waning interest from institutional players does not seem to have affected retail investors. As reported by U.Today, there has been an increase in interest from retail investors. These new entrants who want to buy Bitcoin have hit ATH in specific Google searches about the asset.
Source: https://u.today/bitcoin-etf-0-inflow-reshaping-btc-price-outlook
