VanEck’s Bitcoin ETF (HODL) is under pressure, alongside the rest of Bitcoin ETFs, which saw a whopping $234 million in outflows. This outpouring of funds stemmed from worries surrounding US trade policies as well as the upcoming election season. HODL also suffered, with the fund’s outflow hitting $5.5 million.
While the current outflow isn’t as huge as some of the other ETFs, it does reflect how crypto investors are becoming increasingly cautious, especially considering the turmoil that they have to face.
What Is Driving The Investor Exodus?
A few key factors are driving this sudden outflow:
- Volatility of Trade – The price of Bitcoin hovering around the $48,000-$52,000 range is bound to spook investors.
- Tension Between Economies – Democrats and Republicans are tussling, which has unnerved investors and caused a wider sell-off across several asset classes including crypto ETFs.
- Uncertain Politics – As elections get closer, traditional market players move to protect themselves in anticipation of tough rules.
It appears that the $540 million in total outflows coupled with these factors point to a market suffering from increased levels of risk aversion.
What Is The Comparison VanEck Bitcoin ETF With Others?
Grayscale was constantly outflowing money and not attracting investors while Van Eck dipped 5.5 Million which was a small amount in comparison to other funds. For the most part VanEck’s flow seemed to rest undisturbed.
Blackrock on the other side managed to accomplish a small gain during a torrid down part of the market with their trust fund, but with outpours of some funds still available, it seems like partially BlackRock was gaining off the vultures picking up the leftovers.
What Will Happen Next With Bitcoin ETFs?
Even with the volatility and money flowing out, experts believe that Bitcoin ETFs will keep on being one of the dominated options in the multilayered crypto market. Interest is still building and many big players are simply seeing the bleeding as a rough patch and not a trend for the long term.
Concluding Remarks
The outflow from VanEck, which amounts to $5.5 million, is only a minor piece of a greater whole. Investors remain withdrawn due to macroeconomic factors such as trade policy and election uncertainty. Some investors are willing to take on the risk and accumulate BitCoin at lower prices while other investors are pulling out.
