ETFs
Here’s how many outflows Spot Bitcoin ETFs saw last week as BTC falls 3%
Most US-based spot Bitcoin ETFs have started experiencing substantial withdrawals and the total amount has soared to over $500 million in the last week alone, even though it was only ‘a four-day trading week.
These developments have undoubtedly hurt BTC price movements, which are closely linked to ETF flows.
Spot ETF outflows soar
Since mid-January, when the US SEC reluctantly approved nearly a dozen spot Bitcoin ETFs, these financial vehicles have been at the forefront of investor adoption, particularly those who refrained from entering the landscape before this regulatory sign.
A few trends have been established over the last five months or so. It all started off on a positive note as ETFs saw consecutive days of inflows from January 26th to February 20th. Things changed at the end of April and beginning of May when investors withdrew a lot, especially on May 1st.
The tide turned once again between mid-May and early June when ETFs established their longest streak of positive flows (19 days). However, uncertainty in the US economy, including the Fed’s refusal to cut interest rates, has turned things around over the past ten days.
In fact, there was exits over the last eight out of nine trading days. The only exception was on June 12, with $100.8 million in admissions.
Last week, even though trading on Wall Street was only open for four days, only withdrawals were recorded. According to According to FarSide, just under $550 million was withdrawn from ETFs.
Interestingly, Fidelity’s FBTC saw the most outflows, surpassing even Grayscale’s GBTC. On Friday, $44.8 million was withdrawn from FBTC and $34.2 million from GBTC. Ark Invest’s ARKB was also in the red.
BTC Price Drop
As mentioned above, BTC price movements have been highly correlated with ETF flows. It is therefore not surprising that the underlying asset has underperformed over the past week.
Aside from a brief rise from $66,000 to $67,200 on Monday, bitcoin has mostly lost value. This culminated last night when he slumped to a five-week low of $63,300. Despite rallying around $1 trillion since then, BTC is still down around 3% for the week and its market cap has declined to $1.265 trillion.
Bitcoin/Price/Chart 06/22/2024, Source: TradingView SPECIAL OFFER (Sponsored)
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