ETFs
Spot Bitcoin ETF Flows Sag As Crypto Price Drops
ETF Investment Tools
After bouncing for weeks, flows into spot Bitcoin ETFs fell into negative territory in three of the last four days as the price of the asset they are based on fell.
The 11 funds totaled more than $300 million in outflows for the week, according to research by British asset manager Farside Investors. Tuesday’s outflows broke a 19-day streak of inflows for products barely five months old that track the largest cryptocurrency by market capitalization.
Grayscale Bitcoin Trust (GBTC) outflows totaled more than $226 million, the largest among spot bitcoin ETFs. The fund, a conversion of a trust, has the highest fees among the products. But the very successful Fidelity Wise Origin Bitcoin Fund (FBTC) also recorded rare capital outflows on three separate days amounting to more than $116 million, including $106 million on Thursday. The fund has generated more than $9.5 million in inflows since its launch on January 11.
Even the BlackRock Bitcoin Trust (IBIT)which amassed a record $17.6 billion in bitcoin assets, received only light interest, generating just $38 million in inflows for the week.
etf.com: FBTC feed
On June 4, spot Bitcoin ETFs generated $886 million in inflows, the second-highest total in fund history. and $1.8 billion in admissions for the week.
Bitcoin’s price fell more than 7% over the seven days to around $65,000, its lowest level in a month, according to crypto markets data provider CoinMarketCap. Market observers say the decline is likely the result of mining companies selling stakes to improve their balance sheets and, to a lesser extent, profit-taking by large investors.
“BTC spot ETF flows often tend to be price driven,” wrote analyst Noelle Acheson, author of the Crypto Is Macro Now newsletter, via Telegram at etf.com. She added that miners were “probably” responsible for the pressure on Bitcoin sales.
“This is a typical feature of the post-halving cycle, as unprofitable miners turn off their machines and sell their BTC reserves, and optimistic miners who want to wait for the market to recover might sell BTC to cover their operating expenses.”
Bitcoin Price Drop
June 9 transfers from mining pools to Binance, the world’s largest cryptocurrency exchange, hit a 2-month high of more than 3,000 bitcoins, according to data from analytics firm CryptoQuant. “This change aligns with a price correction, which sent #Bitcoin down to $66,000,” the company wrote in an X post on Thursday.
The company separately noted that on June 10, miners sold an additional 1,200 bitcoins via over-the-counter windows, “the highest daily volume in over two months.”
The story continues
The movement of tokens onto trading platforms generally indicates that holders of digital assets are looking to sell.
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