ETFs
Bitcoin ETFs bleed after outflows hit $228 million as miners capitulate
Bitcoin ETFs saw a massive wave of outflows estimated at $228.2 million. Data from Distant investors revealed a net outflow of $226.2 million from the Spot ETF market on June 13.
Remarkably, BlackRock’s IBIT ETF is the only ETF fund not to experience outflows. On the contrary, it recorded a net inflow of $18.3 million. Thus, these statistics confirm that spot ETFs elicit different sentiments from investors, especially in a volatile market.
US Bitcoin Spot ETF Performance Shows Investor Sentiment
Eleven Spot Bitcoin ETFs in the United States saw significant outflows, totaling $226.21 million. Fidelity’s FBTC was hit the hardest, with its second largest single-day outflow since its introduction.
Based on data from Farside Investors, FBTC saw a massive outflow of $106.4 million. In comparison, Grayscale GBTC ETF continued to struggle with capital outflows, recording a net outflow of $61.5 million.
Other big players, such as Ark Invest and 21Shares’ ARKB, saw capital outflows worth $52.7 million. Meanwhile, VanEck and Bitwise both saw outflows of around $10 million each.
These outflows are likely a reflection of the recent decline in the price of Bitcoin over the past few weeks. On that basis, BlackRock’s $18.2 million inflow via its IBIT ETF was quite impressive on a day dominated by outflows.
Bitcoin Price Patterns and Market Overview
Bitcoin entered a volatile phase after approaching the $72,000 price level last week. Additionally, it lost nearly 6.5% of its price gains over the past week.
However, the analytical platform Feeling reveals an interesting spike in buyer interest in Bitcoin. This is the second largest wave of buyer interest in the last two months.
Aside from buyer interest, Bitcoin’s selling pressure appears to be decreasing. According to Santiment’s analysis, FOMO and greed in the market work in two ways. First, prices spike and traders rejoin the market in hopes of a second increase.
In the second scenario, the price falls, but traders believe it is necessary. Based on this belief, they will accumulate more coins, hoping for a quick price recovery.
It is impressive to see that Bitcoin whales have entered an accumulation phase. The number of whales holding over 1,000 BTC tokens has reached a new all-time high. Additionally, Bitcoin miners are selling in large numbers to offset their operating costs after the April halving. The sales of these miners likely influence the price movement of Bitcoin.
Meanwhile, the analyst Rekt Capital believes that Bitcoin’s failure to achieve a breakthrough could be beneficial in the long term. He noted that Bitcoin has never made a major price change after a halving.
According to Rekt Capital, an early Bitcoin breakout would accelerate the cycle to the point where the bull market would be shorter than usual. So he believes The current consolidation phase will help Bitcoin price align with historical halving cycles, allowing for a normal bull run.
Additionally, Rekt Capital referred to a quote from Baron Rothschild, who made his fortune through FOMO buying: According to Rothschild, buy when there is blood in the streets, even if that blood is yours. So, investors are currently taking this approach to Bitcoin despite its decline.
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