Indian Rupee Rises as Bitcoin ETP Flows Go Negative

The Indian Rupee has gained against major currencies as energy flows resumed through the Strait of Hormuz. Meanwhile, Bitcoin ETP flows have turned negative for the first time since November 2023.

K33 Research reports that global Bitcoin ETP holdings have fallen by 127,774 BTC (around 8% from their peak), marking the largest drawdown on record. This has led to concerns about institutional demand and its impact on spot momentum in the cryptocurrency market.

However, it's worth noting that daily outflows have slowed from roughly 4,400 BTC per day to around 625 BTC per day, suggesting selling pressure may be easing rather than accelerating. While this is a positive sign, it remains to be seen whether institutional demand will pick up and support a sustained recovery in the market.

The flow picture in Bitcoin has been vulnerable to fading momentum, making ETP stabilization critical for a potential crypto recovery. If outflows continue to slow, traders may start watching for a return to positive daily flows as a confirmation signal.