'Acute Threat'—Bitcoin Suddenly Braced For A BlackRock ETF Price 'Shock'
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Bitcoin has inched higher this week, regaining ground as traders see a $1 trillion “parabolic” move ahead . The bitcoin price has added almost 10% since dropping under $60,000 per bitcoin earlier this month, with a critical Federal Reserve July "pivot" looming . Now, as BlackRock, the world’s largest asset manager quietly plots its “next phase,” a “shock" exchange-traded fund (ETF) outflow could be about to torpedo the bitcoin price recovery. “A shock outflow is the single most acute threat to the recovery ahead of the consumer price index (CPI) print on 14 July,” analysts with the Bitfinex bitcoin and crypto exchange said in an emailed note that described the spot bitcoin ETF outlook as "fragile." U.S. spot bitcoin ETFs lost almost $100 million on Thursday, according to data from SoSoValue, with the funds this month adding to losses that topped $4.5 billion in June. “Year-to-date the complex remains down $5.4 billion, and June’s $4.5 billion exit still dominates the picture,” the Bitfinex analysts said. “The pattern reads as tactical re-entry, with institutional conviction shallow enough to reverse in a single session.” BlackRock’s IBIT, the largest bitcoin fund by net assets that dominates the bitcoin ETF field, has sold almost 100,000 bitcoin in recent months to meet redemption requests, now holding just over 733,000 bitcoin worth just under $50 billion on behalf of investors. Earlier this month it was reported that the average IBIT investor is sitting on a loss of roughly 40%. "Bitcoin spot ETFs are unable to attract consistent and sufficient inflows over the long term," Simon-Peter Massabni, head of business development at XS.com, said in emailed comments. “According to SoSo Value, after 10 days of continued outflows from these ETFs, they were unable to attract inflows for more than 3 days, with only around $500 million recorded following $2.7 billion of outflows over those 10 days.”
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