Bitcoin ETFs see strong capital outflow
Bitcoin ETFs recorded losses last Monday (18) with over US$648.64 million (R$3.26 billion) in outflows.
The funds had billion-dollar withdrawals amid concerns about geopolitical risks, high interest rates in the United States and pressure on Treasuries.
Bernardo Pascowitch, presenter of Resenha do Dinheiro, highlights that ETFs are widely used by institutional investors as the main gateway to exposure to bitcoin.
"ETFs function as a vehicle for large institutional contributions. When this money leaves, it is normally being directed to other assets considered safer or more liquid", he explains.
The market doesn't stop and money doesn't wait. Subscribe to the Resenha do Dinheiro newsletter and stay up to date with everything that matters to your pocket. Just click here.
The movement occurred even after the approval of the Clarity Act project, considered positive for the sector in the United States.
"This happened after the approval of the Clarity Act by the US Senate, which brought more transparency to the regulatory framework for the crypto industry. In theory, it was news that should benefit the market", says Marilia Fontes, founding partner of Nord Investimentos.
Pascowitch considers that the entry of large institutional investors into the crypto market has brought more liquidity to digital assets, but has also increased the sector's sensitivity to global macroeconomic movements.
"Many think that the entry of funds would make the bitcoin market more stable, but institutional investors see this asset as part of a diversification strategy, just like emerging stocks, technology, metals or public bonds. Therefore, money comes and goes very quickly", says the presenter.
According to him, in times of greater instability, bitcoin is usually among the first assets sold by large investors.
In addition, it is important for investors to remain cautious when following the movements of large institutional funds.
"It makes no sense for investors to get too excited when institutional investors start buying heavily, nor to despair when they start to sell. These movements are part of their portfolio management strategy", adds Bernardo.
Dinheiro Review
Carried out with the support of B3 and the investment manager BlackRock, the program is presented by Thiago Godoy, the "Financial Daddy", Marilia Fontes, founding partner of Nord Investimentos; Bernardo Pascowitch, founder and CEO of Yubb, proposes a light, direct and uncomplicated approach to topics related to financial education and investments. The attraction addresses the main themes of the economy weekly with the informality of a conversation between friends - without compromising on analysis.
The Money Review airs every Friday, at 7pm, on the CNN Money YouTube channel and on Sundays, at 3pm, on CNN Brasil.
Source: CNN