ETFs
Bitcoin ETFs lose $544 million in 6 days!
Sun June 23, 2024 ▪ 3 min reading ▪ by Luc Jose A.
Bitcoin ETFs are facing an unprecedented financial hemorrhage, recording massive net outflows for six consecutive days. With more than $544 million withdrawn, this phenomenon reflects significant tensions in the cryptocurrency market, raising crucial questions about the future of these financial products and their stability. Investors and analysts are closely monitoring this worrying trend, seeking to understand its root causes and future implications.
A series of massive cash outflows
The market is dark. For six straight days, Bitcoin ETFs suffered massive net outflows totaling over $544 million. On June 21, outflows reached $105.9 million, marking the sixth consecutive day of withdrawals exceeding $100 million.
The biggest contributors to this trend are the Fidelity Wise Origin Bitcoin Fund with $44.8 million, the Grayscale Bitcoin Trust with $34.2 million, and the ARK 21Shares Bitcoin ETF with $28.8 million. Conversely, the Franklin Bitcoin ETF recorded an inflow of $1.9 million, an exception in this context of widespread withdrawals.
This financial hemorrhage was also accompanied by an increase in sales of Bitcoin “whales”. These massive sell-offs add further pressure to an already volatile market and increase concerns about the future stability of Bitcoin ETFs and the crypto market in general.
Crypto market under pressure
According to Ki Young Ju, CEO of CryptoQuant, these large crypto whales have sold around $1.2 billion worth of BTC over the past two weeks. Ju warns that if this sell-side liquidity is not absorbed, it could lead to an increase in BTC deposits on exchanges, which would have a significant impact on the market. Indeed, the increase in deposits on the platforms could increase selling pressure, affecting prices and market stability.
The future of Bitcoin may seem uncertain in the face of this wave of withdrawals. But this is not the case. Despite the drop in the price of Bitcoin, 87% of holders are in profit. That means something!
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.