Significant Outflows from Bitcoin Spot ETFs: Grayscale and Fidelity Hit Hard

Significant Outflows from Bitcoin Spot ETFs: Grayscale and Fidelity Hit Hard

Bitcoin spot exchange-traded funds (ETFs) in the United States are experiencing significant outflows, with a total net withdrawal of nearly $140 million recorded as of June 20. This marks the fifth consecutive day of substantial outflows, as reported by Wu Blockchain.

Grayscale and Fidelity Witness Major Withdrawals

On June 20, Grayscale’s Bitcoin Trust (GBTC) saw a substantial single-day outflow of $53.1022 million, while BlackRock’s ETF (IBIT) recorded a smaller inflow of $1.4791 million. Fidelity’s Bitcoin ETF (FBTC) also experienced a significant one-day net outflow of $51 million, according to data from SoSo Value. The overall net asset value of Bitcoin spot ETFs now stands at $56.41 billion.

Continued Exodus from Bitcoin Spot ETFs

The trend of withdrawals has been notable throughout June. By June 19, the total net outflow of Bitcoin spot ETFs had reached $152 million. Grayscale’s GBTC saw another significant single-day outflow of $62.3397 million on Wednesday. Data from Farside highlights the extent of the outflows since the beginning of the month.

Investor Confidence in Bitcoin ETFs Wavers

The persistent outflows from Bitcoin spot ETFs suggest a wavering confidence among investors regarding Bitcoin’s short-term price outlook. Some investors might be redirecting their focus to other crypto ETFs, such as those centered around Ethereum.

Bitcoin Price Decline Coincides with ETF Outflows

The outflows from Bitcoin ETFs have coincided with a recent decline in Bitcoin’s price. Over the past 24 hours, Bitcoin has dropped from $66,374 to $64,552, indicating a continued bearish trend and sustained downward pressure.

Insights from Bitcoin Analyst Willy Woo

Bitcoin analyst Willy Woo provided insights into the situation, explaining the absence of a significant price jump despite the outflows. He attributes this to a slump in Bitcoin mining activity, with only a few miners actively working. According to Woo, Bitcoin is experiencing a rare miner capitulation, linked to the halving event, which eliminates weaker miners who then sell off their BTC. Woo suggests that further liquidations are necessary before the market can see renewed bullish activity.

In summary, the recent substantial outflows from Bitcoin spot ETFs highlight growing investor uncertainty and coincide with a notable decline in Bitcoin’s price, reflecting broader market dynamics and miner activity.

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