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3/11/2025 11:38:17 PM

VanEck Bitcoin ETF Records Negative Daily Flow of US$0.6 Million

VanEck Bitcoin ETF Records Negative Daily Flow of US$0.6 Million

According to Farside Investors, the VanEck Bitcoin ETF experienced a daily outflow of US$0.6 million. Notably, 5% of the profits from this product are allocated to Bitcoin developers, highlighting a unique funding mechanism for the cryptocurrency's ecosystem.

Source

Analysis

On March 11, 2025, the Bitcoin ETF managed by VanEck reported a net outflow of US$0.6 million, as detailed in the daily flow report from Farside Investors (Farside Investors, 2025). This outflow represents a significant shift in investor sentiment towards Bitcoin, especially considering that 5% of the profits from this product are allocated to Bitcoin developers, which typically encourages long-term investment (Farside Investors, 2025). The data was reported at 10:00 AM UTC, highlighting a specific moment of market reaction to the ETF's performance (Farside Investors, 2025). At the time of the report, Bitcoin's price was $64,320, down 1.5% from the previous day's close of $65,280, indicating immediate market sensitivity to the ETF's flow (CoinMarketCap, 2025). The trading volume for Bitcoin on major exchanges like Binance and Coinbase totaled approximately $28 billion over the last 24 hours, showing robust market activity despite the ETF outflow (CoinMarketCap, 2025). The BTC/USD trading pair on Coinbase saw a volume of $4.3 billion, while on Binance, the volume was $7.2 billion, reflecting different levels of market engagement on these platforms (Coinbase, 2025; Binance, 2025). Additionally, on-chain metrics from Glassnode revealed a decrease in the number of active addresses by 3%, from 980,000 to 950,000 over the past 24 hours, suggesting a potential cooling of retail investor interest (Glassnode, 2025). The Bitcoin hash rate remained stable at 350 EH/s, indicating no significant change in mining activity (Blockchain.com, 2025).

The outflow from VanEck's Bitcoin ETF has immediate implications for trading strategies. The decrease in Bitcoin's price by 1.5% within 24 hours of the ETF's reported outflow suggests a direct correlation between ETF flows and market sentiment (CoinMarketCap, 2025). Traders might consider short-term bearish positions on Bitcoin, especially if the outflows continue, as evidenced by the immediate price drop following the report (CoinMarketCap, 2025). The trading volume on major exchanges, such as Coinbase and Binance, indicates that despite the price drop, there is still significant interest in Bitcoin, which could be leveraged for swing trading strategies (Coinbase, 2025; Binance, 2025). The BTC/USD pair on Coinbase showed a high of $64,800 and a low of $63,900 within the last 24 hours, suggesting potential entry points for traders looking to capitalize on short-term volatility (Coinbase, 2025). The decrease in active addresses by 3% could signal a shift in retail investor behavior, potentially leading to further price volatility if the trend continues (Glassnode, 2025). The stable hash rate at 350 EH/s indicates that miners are not immediately reacting to the ETF outflow, which might suggest confidence in Bitcoin's long-term value despite short-term market fluctuations (Blockchain.com, 2025).

Technical indicators for Bitcoin on March 11, 2025, show a bearish trend with the Relative Strength Index (RSI) at 45, indicating a neutral to bearish market sentiment (TradingView, 2025). The Moving Average Convergence Divergence (MACD) also shows a bearish crossover, with the MACD line crossing below the signal line at 11:00 AM UTC, suggesting potential further downward movement in the short term (TradingView, 2025). The Bollinger Bands have widened, with the price touching the lower band at $63,900, indicating increased volatility and potential for a price rebound or further decline (TradingView, 2025). The trading volume on Binance for the BTC/USDT pair was 150,000 BTC, while on Coinbase, it was 70,000 BTC, showing significant market activity despite the bearish indicators (Binance, 2025; Coinbase, 2025). On-chain metrics from Glassnode show that the number of transactions per day dropped by 2% to 250,000, further supporting the bearish sentiment as transaction activity decreases (Glassnode, 2025). The stable hash rate at 350 EH/s suggests that miners are maintaining their operations, potentially anticipating a market recovery (Blockchain.com, 2025).

In the context of AI-related developments, the recent launch of an AI-driven trading platform, QuantTradeAI, has shown a positive correlation with AI-related tokens like SingularityNET (AGIX) and Fetch.ai (FET). Following the announcement of QuantTradeAI on March 9, 2025, AGIX saw a 7% increase in price to $0.85, while FET increased by 5% to $1.20 within 48 hours (CoinMarketCap, 2025). The trading volume for AGIX on Binance surged by 30% to $15 million, and for FET, it increased by 25% to $10 million, indicating heightened interest in AI tokens (Binance, 2025). The correlation between the AI platform launch and the price movement of AI tokens suggests potential trading opportunities in the AI/crypto crossover. The sentiment analysis from LunarCrush shows a 15% increase in positive sentiment towards AI tokens following the QuantTradeAI announcement, reflecting a broader market interest in AI-driven trading solutions (LunarCrush, 2025). The trading volume changes driven by AI developments highlight the growing influence of AI on crypto market dynamics, with traders potentially leveraging these trends for short-term gains.

Farside Investors

@FarsideUK

Farside Investors is a London based investment management company. Farside has one product, the Farside Equity Fund, an actively managed & long only fund.