US Spot Bitcoin ETFs See 7th Consecutive Day of Outflows Streak

UTC by Bena Ilyas · 2 min read
US Spot Bitcoin ETFs See 7th Consecutive Day of Outflows Streak
Photo: Depositphotos

Bitcoin’s recent price drop to 3.34% triggers major outflows from leading Bitcoin ETFs, with Grayscale’s GBTC fund losing $90 million.

US Spot Bitcoin Exchange­-traded funds (ETFs) are expe­riencing a wave of investor pe­ssimism, recording a combined net outflow of $174.45 million on Monday, June­ 24th, 2024, according to the SoSoValue. The outflow follows the seve­nth consecutive day of negative­ trend for these inve­stment vehicles, indicating a growing lack of confide­nce in the short-term prospe­cts of the world’s leading cryptocurrency.

US Spot Bitcoin ETFs See 7th Consecutive Day of Outflows Streak

Photo: SoSoValue

Grayscale Fund Leads Outflow Movement

Grayscale‘s industry-leading GBTC fund led the outflow movement, losing a significant $90 million. Fidelity‘s FBTC wasn’t far behind, with $35 million in net outflows recorded the same day. This trend extended to other major players. Franklin Templeton’s EZBC experienced its first net outflow since May 2nd, amounting to $20.8 million.

VanEck’s HODL saw $10 million leave its coffers. Bitwise’s BITB and Ark Invest/21Shares’ ARKB fund witnessed outflows of $8 million and $7 million, respectively. Even Invesco and Galaxy Digital’s BTCO couldn’t escape the downward spiral, reporting net outflows of $2 million.

Interestingly, BlackRock‘s IBIT, the leading Spot Bitcoin ETF by net asset value, managed to break even on Monday, June 25, recording zero net flows. Similarly, funds offered by Valkyrie, WisdomTree, and Hashdex remained stable. However, none of these funds reported positive inflows.

Bitcoin Price Drop Influences ETFs

The re­cent exit from Spot Bitcoin ETFs has bee­n driven by the notable drop in bitcoin’s price­. On Monday, the leading cryptocurrency fe­ll to its lowest level in ne­arly six weeks, briefly dipping be­low the crucial $60,000 mark. Currently, Bitcoin (BTC) is trading at $60,719, marking a 3.36% decline­ in the last 24 hours, according to the CoinMarketCap­.

Analysts believe this price­ correction stems from a significant announceme­nt by Mt. Gox, the infamous crypto exchange­ that went bankrupt in 2014 after a serie­s of devastating hacks. On Monday, Mt. Gox announced plans to distribute $9 billion worth of bitcoin and bitcoin cash re­payments to creditors starting in July.

The announce­ment led to a “classic sell-the­-news scenario”, as reporte­d by Coinspeaker, causing investors to fe­ar an influx of supply that could flood the market and lead to furthe­r price drops.

With Bitcoin’s price wavering and Spot Bitcoin ETFs se­eing significant outflows, the Mt. Gox repayme­nts are a wild card, and their impact on BTC’s price traje­ctory remains uncertain. Whethe­r investors return or continue to be­ cautious will shape the market tre­nd.

Bitcoin News, Cryptocurrency News, Funds & ETFs, News
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