Bitcoin Spot ETFs End 19-Day Inflow Streak with $65 Million Outflow: What Happened?
After an impressive 19-day streak of net inflows, U.S.-listed spot Bitcoin exchange-traded funds (ETFs) faced a significant setback
After an impressive 19-day streak of net inflows, U.S.-listed spot Bitcoin exchange-traded funds (ETFs) faced a significant setback on Monday, with a combined $65 million in net outflows.
Grayscale’s GBTC was the hardest hit, experiencing $40 million in outflows, the highest among its peers. This marks a notable event in the ETF market, given the recent trend of consistent inflows.
Breaking🚨: #Bitcoin spot ETF total net outflow was $64.93M yesterday, the first shift after 19 days of consistent inflow.
Yesterday, Grayscale's ETF, $GBTC, had a net outflow of $39.54 million, bringing GBTC's total historical net outflow to $17.97 billion.
The Bitcoin spot… pic.twitter.com/WWr1P7qqcZ
— NameCoinNews (@NameCoinNews_) June 11, 2024
Grayscale’s GBTC has been a notable performer, albeit for negative reasons, since its inception in January.
The fund has accumulated a staggering $18 billion in outflows, maintaining its position as the worst-performing ETF by outflows. In contrast, Bitwise’s BITB ETF saw $7.6 million in inflows, standing out as the leader in attracting new investments during the same period.
Analyzing the Outflows
Other prominent ETFs also saw substantial outflows. Invesco and Galaxy Digital’s BITCO experienced $20 million in net outflows, while Valkyrie’s BRRR ETF recorded $16 million in net outflows. Fidelity’s FBTC wasn’t spared either, with $3 million in net outflows, marking its first negative flow since early May.
This downturn follows a previous net outflow of $84 million reported on May 10, capping a challenging April marked by persistent outflows. Despite the setbacks, the subsequent inflow period saw ETFs accumulate over $4 billion in just 19 days of trading, demonstrating the volatile nature of the cryptocurrency market.
Market Context and Future Outlook
The recent outflows come amidst a broader decline in the cryptocurrency market, coinciding with losses in the stock market. Market analysts have cautioned about a volatile week ahead, with key economic indicators and policy decisions on the horizon.
Traders are particularly wary of the upcoming U.S. Consumer Price Index (CPI) reading scheduled for Wednesday and a speech by U.S. Treasury Secretary Janet Yellen on Friday, both of which could significantly impact riskier assets like cryptocurrencies.
Additionally, the Federal Reserve’s monetary policy decisions, to be discussed during the two-day Federal Open Market Committee (FOMC) meeting starting today, are expected to add to market uncertainty. These factors are likely to influence investor sentiment and market movements in the near term.
Bitcoin itself has not been immune to these pressures, dropping 2.7% in the past 24 hours. This decline reverses some of the gains from last week when Bitcoin briefly reached a two-month high of $70,000.
The cryptocurrency’s recent performance underscores the inherent volatility and sensitivity to broader economic developments.
As the market navigates these turbulent times, the performance of Bitcoin spot ETFs will continue to be a focal point for investors.
Since the launch of the BTC spot ETFs in the US, ~ 899,592 #Bitcoins have been purchased, which is not a bad performance at all. The spot ETFs worldwide account for 5% of the entire BTC supply!
However, comparing newly mined Bitcoin with Bitcoin purchased through the ETF is… pic.twitter.com/ZaCCidd507
— Jimie (@Your_NLP_Coach) June 10, 2024
The recent outflows, while significant, are part of the broader ebb and flow of the market. How these ETFs perform in the coming weeks will largely depend on broader economic trends and investor confidence in the cryptocurrency sector.
In conclusion, the end of the 19-day inflow streak for Bitcoin spot ETFs highlights the volatile nature of the cryptocurrency market.
📌 Bitcoin ETF Highlights for June 12⤵️
Total net inflow for US #Bitcoin spot ETFs—($100M)💸
1️⃣ BlackRock's $IBIT inflow—$16M🔼
2️⃣ Grayscale's $GBTC inflow—$0M
3️⃣ Fidelity's $FBTC inflow—$51M🔼
4️⃣ #IBIT's historical net inflow—$17.62B 🔄
5️⃣ #GBTC's historical net… pic.twitter.com/YipRnqAXEe— TheNewsCrypto (@The_NewsCrypto) June 13, 2024
While recent outflows have raised concerns, the sector’s resilience and capacity for rapid recovery remain key characteristics. Investors will be closely watching upcoming economic indicators and policy decisions to gauge the market’s future direction.
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