Bitcoin Spot ETFs Experience Continued Outflows: Grayscale, Fidelity Witness Significant Withdrawals
According to data, Bitcoin spot exchange-traded funds (ETFs) in the US have seen a total net outflow of nearly $140 million as of June 20. Wu Blockchain, a news outlet, initially reported that Bitcoin ETFs have experienced significant outflows for the fifth consecutive day. The report states, “On June 20, Grayscale ETF GBTC had a single-day outflow of $53.1022 million, and BlackRock ETF IBIT had a single-day inflow of $1.4791 million.”
Notable players such as Fidelity and Grayscale have witnessed significant withdrawals from their Bitcoin ETFs. Fidelity’s FBTC, according to SoSo Value data, experienced a one-day net outflow of $51 million. Additionally, the total net asset value of Bitcoin spot ETFs is currently $56.41 billion.
As of June 19, the total net outflow of BTC spot ETFs was $152 million. On Wednesday, Grayscale ETF GBTC had a net outflow of $62.3397 million in a single day, as reported by the data. Farside Investors’ data revealed the extent of the recent exodus of Bitcoin ETFs since the beginning of this month.
The continuous outflows of Bitcoin spot ETFs have raised concerns among investors in the US, leading them to question their confidence in Bitcoin’s short-term price outlook. On the other hand, the withdrawal of investors from Bitcoin ETFs may be attributed to their interest in other crypto ETFs, such as Ethereum.
Furthermore, the outflows of funds have coincided with a recent price dip in Bitcoin. The world’s largest cryptocurrency experienced a drop from $66,374 to its current trading price of $64,552 at press time.
The significant bearish momentum indicates a gradual decline, suggesting sustained downward pressure. Bitcoin analyst Willy Woo provided insights into the lack of a major price surge despite the outflows. He attributes this to a slump in Bitcoin mining activity, with only a few miners actively working. He stated, “Bitcoin is undergoing a rare miner capitulation. This one is from the halving event, eliminating weak miners. As they exit, they sell BTC, and the price rebounds afterwards.” Woo further added, “We still need a significant number of liquidations before we can expect further bullish activity.”
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