ETFs
Bitcoin ETFs enjoy 6 days of continuous 9-digit outflows
The end of the week brought more outflows from the Bitcoin spot (BTC) exchange-traded funds (ETFs), bringing total net outflows for these products to more than $544 million.
According to Distant investorsspot Bitcoin AND F recorded net outflows amounting to $105.9 million on June 21, making it the sixth consecutive day with outflows exceeding $100 million.
The majority of these outflows came from three major funds: the Fidelity Wise Origin Bitcoin Fund (FBTC) with $44.8 million, the Shades of grey Bitcoin Trust (GBTC) with $34.2 million and the ARK 21Shares Bitcoin ETF (ARKB) with $28.8 million outgoing.
Spot Bitcoin ETFs circulating from June 14 to 21 | Source: Farside Investors
Despite the bearish market sentiment, not all ETFs have followed this trend. The Franklin Bitcoin ETF (EZBC) managed to buck the trend with an inflow of $1.9 million on the same day. For its part, BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF by holdings, remained neutral with no significant change.
The recent trend in outflows is remarkable, especially since spot Bitcoin ETFs saw net outflows of $580.6 million last week. This comes after a period of four consecutive weeks of net influxwhich collectively added approximately $4 billion to these investment products.
Bitcoin Market Woes Deepen Amid Increased FUD and Whale Activity
The broader cryptocurrency market has experienced increased fear, uncertainty, and doubt (FUD), which was reflected in the Bitcoin price falling below $64,500.
On-chain data also revealed significant activity among Bitcoin whales, who hold significant amounts of BTC. According to information shared by Ki Young Ju, CEO of CryptoQuant, on This cashing trend coincided with negative net flows from spot BTC ETFs.
#Bitcoin Whales long-term holders have sold $1.2 billion in the past two weeks, likely through brokers.
ETF net flows are negative with outflows of $460 million during the same period.
If this ~$1.6 billion of sell-side liquidity is not purchased over-the-counter, brokers can deposit $BTC to trade, impacting the market. pic.twitter.com/oYeKsRqKeF
– Ki Young Ju (@ki_young_ju) June 18, 2024
Ju warned that if this sell-side liquidity was not absorbed over-the-counter, it could lead to additional BTC deposits on exchanges, which could further impact the market.
The price of the cryptocurrency has faced challenges in recent weeks. On June 21, the value of Bitcoin fell to $63,500. It has since rebounded slightly, adding around $750 in the past 24 hours, according to CoinGecko.
Nonetheless, the coin saw a 7.2% decline over the past 14 days, reflecting continued market volatility.