Balchunas Challenges Citi’s Bitcoin ETF Outflow Link to Price Drop

Bloomberg ETF analyst Eric Balchunas is pushing back against a recent Citi research note linking US spot Bitcoin exchange-traded fund (ETF) outflows to the cryptocurrency’s recent 21% decline. Citi analysts had argued that each $1 billion withdrawn corresponds to an average 3.4% drop in Bitcoin’s value, citing these redemptions as key drivers behind the price’s downturn. However, Balchunas contends this conclusion is limited to last month’s outflows and doesn’t account for ETF year-to-date activity.