Bitcoin ETFs enjoy 6 days of continued 9-figure outflows

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As a researcher with experience in the cryptocurrency market, I find the recent trend of outflows from spot Bitcoin ETFs concerning. The cumulative net outflows for these products have exceeded $544 million, with three major funds – Fidelity Wise Origin Bitcoin Fund, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF – accounting for a significant portion of the outflows. This comes after a period of four consecutive weeks of net inflows, which added around $4 billion to these investment products.

As a financial analyst, I’ve observed that towards the end of the last week, Bitcoin (BTC) exchange-traded funds (ETFs) experienced significant outflows. The cumulative amount of money withdrawn from these products exceeded $544 million.

Based on Farside Investors’ report, there were withdrawals of $105.9 million from Bitcoin spot ETFs on June 21, marking the sixth consecutive day where outflows surpassed the $100 million threshold.

The lion’s share of the outflows was from three funds: Fidelity Wise Origin Bitcoin Fund (FBTC), which accounted for $44.8 million, Grayscale Bitcoin Trust (GBTC) with $34.2 million, and ARK 21Shares Bitcoin ETF (ARKB) contributing $28.8 million.

In spite of the pessimistic atmosphere in the market, not every ETF adhered to this downward trend. The Franklin Templeton’s Bitcoin ETF (EZBC) defied the norm, experiencing a net inflow of $1.9 million on that particular day. On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT), being the largest Bitcoin ETF by assets under management, kept a steady course without any major fluctuations.

I’ve noticed an intriguing development in the Bitcoin ETF market recently. Last week alone, these exchange-traded funds experienced a significant outflow of approximately $580.6 million. This is surprising given that for the previous four weeks, we saw consistent net inflows totaling roughly $4 billion.

Bitcoin’s market woes deepen amidst heightened FUD, whale activity

In simple terms, the extensive cryptocurrency sector is currently grappling with increased anxiety, apprehension, and trepidation (FUD), resulting in Bitcoin’s value dropping beneath the $64,500 threshold.

As a researcher examining Bitcoin’s on-chain data, I’ve uncovered notable activity from large Bitcoin holders, or “whales,” who possess substantial quantities of this cryptocurrency. According to the latest update from CryptoQuant CEO Ki Young Ju on social media platform X, these whales have sold around $1.2 billion worth of Bitcoin over the past two weeks. This selling trend aligns with the negative net flows observed in spot Bitcoin Exchange-Traded Funds (ETFs).

Over the past two weeks, significant Bitcoin investors, known as “long-term holders,” have offloaded approximately $1.2 billion worth of their cryptocurrency holdings. This sale is believed to have been facilitated through brokerages.

— Ki Young Ju (@ki_young_ju) June 18, 2024

If Ju’s warning is heeded not to buy Bitcoins from sellers in the over-the-counter market, there is a risk that more of this cryptocurrency may end up on exchanges instead. This could magnify the market effects if and when these Bitcoins are eventually sold.

In the past few weeks, the price of cryptocurrencies, including Bitcoin, has encountered some challenges. On June 21, Bitcoin’s worth took a significant hit and dipped down to $63,500. However, it has shown some improvement in the last day, gaining approximately $750 as per CoinGecko’s latest report.

Despite a 7.2% drop over the last two weeks, the coin continues to be affected by the market’s volatility.

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2024-06-22 16:54