Markets
Bitcoin ETFs Enjoy 6 Days of Continuous 9-Figure Outflows
The end of the week brought more Bitcoin outflows in sight (Bitcoin) exchange-traded funds (ETF), bringing total net outflows from these products to more than $544 million.
According to Distant investorslocate Bitcoin ETFs recorded net outflows worth US$105.9 million on June 21, making it the sixth consecutive day with outflows exceeding US$100 million.
The bulk of these outflows came from three main funds: the Fidelity Wise Origin Bitcoin Fund (FBTC) with $44.8 million, the Shades of gray Bitcoin Trust (GBTC) with $34.2 million, and the ARK 21Shares Bitcoin ETF (ARKB) with $28.8 million leaving.
Spot Bitcoin ETF Flows June 14-21 | Source: Farside Investors
Despite the bearish sentiment in the market, not all ETFs followed this trend. The Franklin Bitcoin ETF (EZBC) managed to buck the trend with an inflow of $1.9 million on the same day. In turn, BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF by holdings, remained neutral, with no significant changes.
The recent trend in outflows is notable, especially considering that spot Bitcoin ETFs saw $580.6 million in net outflows last week. This occurs after a period of four consecutive weeks of Appetizerwhich, together, added around 4 billion dollars to these investment products.
Bitcoin Market Troubles Deepen Amid Rising FUD and Whale Activity
The broader cryptocurrency market has been experiencing increased fear, uncertainty and doubt (FUD), which has been reflected in Bitcoin’s price falling below the $64,500 mark.
The on-chain data also revealed significant activity between Bitcoin whales, who hold significant amounts of BTC. According to information shared by CryptoQuant CEO Ki Young Ju on X, whales have sold approximately $1.2 billion worth of BTC in the last two weeks. This withdrawal trend coincided with negative net flows into spot BTC ETFs.
#Bitcoin long-term holding whales have sold $1.2 billion in the last 2 weeks, likely through brokers.
Net ETF flows are negative, with outflows of $460 million over the same period.
If this ~$1.6 billion in sell-side liquidity is not purchased in the OTC market, brokers will be able to deposit $BTC to exchanges, impacting the market. pic.twitter.com/oYeKsRqKeF
-Ki Young Ju (@ki_young_ju) June 18, 2024
Ju warned that if this sell-side liquidity is not absorbed into the OTC market, it could lead to more BTC being deposited on exchanges, potentially further impacting the market.
The price of the cryptocurrency has been struggling in recent weeks. On June 21, the value of Bitcoin fell to $63,500. It has since recovered slightly, adding around $750 in the last 24 hours, according to CoinGecko.
However, the coin has suffered a 7.2% drop over the past 14 days, reflecting continued market volatility.