Bitcoin ETF Outflows May not Show Full Demand Picture

Dow Jones11-03 18:24

1024 GMT - Bitcoin's heavy ETF outflows last week following the $6.3 billion Binance hack don't paint the full picture of demand for the cryptocurrency, according to CK Zheng, crypto hedge fund manager at ZX Squared Capital. Bitcoin ETFs saw net outflows of $643 million on Friday. But the firm estimates that spot bitcoin ETFs represent a small share of Bitcoin's total market capitalization of about 6%. "While October's ETF outflows are worth monitoring, they should not be interpreted as a definitive indicator of overall Bitcoin demand," Zheng says. "The broader market encompasses a much larger and more diverse investor base, including institutional holders, corporations, and global investors outside the ETF ecosystem." Bitcoin is 0.3% higher at $76,901.

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