Institutions are Top Blasting and Bottom Selling Bitcoin Just Like Us

Crypto Twitter often likes to envision Bitcoin ETF buyers as sophisticated and calculated investors with unlimited bankrolls to buy dips, but the flow data makes ETF buyers look more like GME and AMC speculators than the Warren Buffett type.

Analyst and investor Will Clemente drew attention to a chart from Velodata, which shows local Bitcoin lows often coinciding with major ETF outflows. The inverse is true for inflows and local tops as well, outside of the election day rally in November.

“Everyone originally thought BTC ETF buyers would be "smart money", but it turns out they've mostly been aping the tops and puking the lows for the last year,” said Clemente in a post on X.

Farside Investors data confirms this trend, as Bitcoin ETFs have recorded a cumulative $3.7 billion in outflows over the last three weeks. BTC is currently down 10.5% over this period, and even traded as low as $76,500, a 19% drawdown.

Despite the volatility, U.S. Bitcoin ETFs have accumulated net inflows of $35 billion.

Blackrock’s IBIT has commanded a majority of the attention, accounting for $39 billion, or 68% of the $57 billion in total inflows.

Meanwhile, Grayscale’s GBTC is responsible for the bulk of outflows, as $22 billion has left the trust since the ETF approvals in January 2024.