Bitcoin spot ETFs have seen a shift in investor sentiment, with net outflows occurring after 19 days of consecutive inflows. According to Farside Investors, a total of 11 U.S. spot Bitcoin ETFs experienced a collective net outflow of $64.9 million. This marks a significant change from the previous trend of consistent inflows.
The Grayscale Bitcoin Trust (GBTC) led the pack with the largest net outflow of $39.5 million, followed by the Invesco Galaxy Bitcoin ETF (BTCO) with $20.5 million in outflows. The Fidelity Wise Origin Bitcoin Fund (FBTC) also saw a minor outflow of $3 million. On the flip side, Bitwise and BlackRock’s ETFs saw modest inflows of $7.6 million and $6.3 million, respectively.
The outflows from the ETFs coincided with a drop in Bitcoin’s price. Over the past 12 hours, Bitcoin’s value dipped from above $70,000 to below $68,000, resulting in $170 million in liquidations and putting pressure on the entire cryptocurrency market.
In the previous week, BTC spot ETFs had been seeing strong inflows, totaling approximately $1.83 billion for the week. This surge in demand, according to Matteo Greco, a research analyst at digital asset investment firm Fineqia International, was the highest since early March. The cumulative net inflow since the inception of these ETFs has now reached a record high of about $15.7 billion.
Bitcoin’s integration into traditional finance is expanding globally, with the recent launch of Australia’s first BTC spot ETF and the approval of Thailand’s inaugural BTC spot ETF by the Thailand Securities and Exchange Commission.
On the macroeconomic front, the Bank of Canada (BOC) and the European Central Bank (ECB) have both cut interest rates by 25 basis points. Despite inflation levels surpassing the central banks’ 2% target, these rate cuts reflect optimism in the ability to manage inflation while implementing less restrictive monetary policies. Such policies are generally positive for risk-on assets like stocks and digital assets such as Bitcoin.
As central banks make these decisions, the U.S. Bureau of Labor Statistics is set to release May figures for the Consumer Price Index (CPI) on June 11. Analysts predict a 0.1% rise in inflation after a 0.5% increase in April, with the year-on-year figure expected to reach 3.4%. Core inflation is also forecasted to rise by 0.3% in May.
The Fed’s monetary policy will also be discussed at a two-day Federal Open Market Committee (FOMC) meeting starting on the same day, indicating a significant week ahead for the financial markets.