Bitcoin Holds Strong Above $64K Despite ETF Outflows

Bitcoin (BTCUSD) traded close to $64K despite increased outflows from bitcoin exchange-traded funds (ETFs). US-listed ETFs experienced a significant daily net outflow of $217 million, contributing to a weekly total of $244.49 million. Despite these outflows, Bitcoin has risen approximately 3.7% over the past seven days. JPMorgan notes that the correlation between Bitcoin ETF prices and inflows has decreased from 0.84 in January to 0.60 recently.

Cathie Wood's ARK Invest completely divested from ProShares Bitcoin Strategy ETF (BITO) by selling 237,983 shares valued at $6.7 million from its Next Generation Internet ETF (ARKW). This sale marks the end of ARK's short-term investment strategy initiated last year in anticipation of US approval for spot Bitcoin ETFs, planning to exchange them upon approval. After continuous sales starting in January, ARK disposed of its remaining BITO shares last week.

Meanwhile, the European Parliament approved stringent new regulations aimed at combating money laundering and terrorist financing. The legislation targets large cash transactions, crypto firms, and football clubs, among others. It establishes a unified rulebook for the 27 EU member states and creates an anti-money laundering authority in Frankfurt to monitor high-risk entities. The new rules mandate enhanced due diligence and reporting of suspicious activities by obligated entities like banks and asset managers.