Bitcoin ETFs Face $714.4M Outflow in Four Straight Trading Days

Bitcoin investors are pulling out of spot ETFs at an alarming rate, raising concerns about confidence in the cryptocurrency.

Robot racing in the air to ETF.
Created by Kornelija Poderskytė from DailyCoin
  • Huge outflows have hit Bitcoin ETFs, raising concerns about investor confidence.
  • Major players like Fidelity and Grayscale have seen significant ETF withdrawals.
  • This four-day outflow streak has followed a similar trend that began in April.

Investors are pulling out of US Bitcoin spot exchange-traded funds (ETFs) at a significant clip, raising questions about their confidence in the leading cryptocurrency. According to data from Wu Blockchain, a prominent blockchain analytics firm, a staggering $152 million was withdrawn on June 18 alone. 

BTC Investors on the Move?

This marks the fourth consecutive day of substantial outflows, with Fidelity’s FBTC and Grayscale’s GBTC among the hardest-hit funds. Farside data reveals the extent of the recent exodus. 

Bitcoin ETF Flow Table: Source: Farside.
Bitcoin ETF Flow Table: Source: Farside

On June 18, Bitcoin spot ETFs saw a net outflow of $152.4 million. Fidelity’s FBTC led the pack, with a record single-day outflow of $83 million. This current four-day streak follows a previous record-setting period of outflows from April 24 to May 2, which totaled seven consecutive trading days. 

These two periods combined represent a cumulative withdrawal of $714.4 million. Grayscale’s GBTC, another major player in the Bitcoin ETF space, also experienced significant outflows. On June 18, it reported a net outflow of $62.34 million. 

However, their situation is part of a larger trend. Historical data shows GBTC has witnessed a total of $18.273 billion in outflows, suggesting a sustained divestment from the Grayscale Bitcoin Trust.

Despite these recent withdrawals, the overall net asset value of Bitcoin spot ETFs remains substantial at $56.056 billion.

Market Impact and Analyst Insights

The outflow of funds from Bitcoin spot ETFs coincides with a recent price dip for Bitcoin itself. The cryptocurrency has fallen from a high of $70,000 and is currently hovering around $65,153. This price movement is sparking concerns within the crypto community.

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Bitcoin analyst Willy Woo weighed in on the situation, offering some insights on why a major price jump hasn’t materialized despite the recent outflows. He suggests that a slowdown in mining activity is a contributing factor. With fewer miners actively adding new Bitcoin to the market, overall trading volume has decreased.

Woo also highlighted the prevalence of paper trading in the Bitcoin market, where people are speculating on price movements without actually holding the underlying coins. He utilized a z-score oscillator to visualize this trend, suggesting a correction might be necessary before a sustained price increase can occur. 

Woo’s analysis suggests that for Bitcoin to regain momentum and reach new highs, more liquidations and increased trading activity are needed. Until then, the outlook for significant price increases remains uncertain.

On the Flipside

  • Not all analysts share Willy Woo’s view on paper trading and mining activity. Some may point to different on-chain metrics suggesting continued bullish signals for Bitcoin.
  • Investors withdrawing from Bitcoin ETFs may be redirecting their attention to other cryptocurrency assets, such as the upcoming Ethereum ETFs.

Why This Matters

The recent large-scale withdrawal from Bitcoin spot ETFs, following steady inflows, raises concerns about weakening confidence in Bitcoin’s short-term price outlook. This may be driven by anticipation of upcoming Ethereum ETFs, as investors diversify their crypto ETF portfolios. Despite this, the overall sentiment remains bullish for the cryptocurrency sector.

Bitcoin dominance is a hot topic right now, and this article dives into why it’s spiking to a nine-week high:
Bitcoin Dominance Spikes to Nine-Week High as Markets Bleed

There’s been a significant outflow of Bitcoin recently, and this article explores what it means for the crypto market:
$621M Bitcoin Exodus Underpins Performance Woes

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.