Bitcoin ETFs Bleed With Zero Inflows, Institutions Panic

Bitcoin ETFs Bleed With Zero Inflows, Institutions Panic

For the seventh consecutive day, significant withdrawals have occurred from US spot Bitcoin ETFs as the price of bitcoin (BTC) drops further. On June 24, all nine of the top Bitcoin ETFs saw a cumulative outflow of $174.5 billion; no ETF saw any inflows. Over $1 billion has been removed from the spot Bitcoin ETFs in the past ten days.

Bitcoin ETFs Keep Losing Ground

Starting this week, Bitcoin ETFs continue to lose value despite $545 million in outflows. According to data from Farside Investors, the Grayscale Bitcoin ETF (GBTC) saw the most significant outflows on Monday, totalling $90.4 million. As a result, the total amount of money removed from GBTC since its founding is now over $18.5 billion.

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The second-biggest hit to Fidelity’s FBTC was $35 million in outflows on Monday. FBTC has consistently seen withdrawals since mid-June, with the AUM falling below $10 billion.

There have been withdrawals from a number of other Bitcoin ETFs; however, since its launch, BlackRcok’s IBIT has not had any withdrawals. Recently, there have been several instances of zero inflows.

The latest sell-off demonstrates that the initial enthusiasm surrounding the introduction of spot Bitcoin ETFs is beginning to fade. Additionally, institutional interest in Bitcoin has decreased due to the unpredictability of the worldwide market. Investment products for Bitcoin saw withdrawals of $630 million last week.

The US Stock Market Performs Better than Bitcoin

There has been a significant disparity between the US stock market, particularly the Nasdaq index, and the current price of Bitcoin. As we all know, after spot Bitcoin ETFs were introduced, the cryptocurrency saw tremendous increases to the start of 2024. Since the price of Bitcoin is still stuck in a range, the second quarter has been more of a consolidation period.

Conversely, the NASDAQ has risen steadily since mid-May, bringing its yearly gains to over 20%. This demonstrates unequivocally that tech equities are superior to Bitcoin.

Bitcoin started the year with a bang. It outpaced the stock market significantly thanks to the launch of the ETFs.

But the recent trends show a divergence:
• Bitcoin – Despite the early gains, BTC is now range-bound.
• NASDAQ – Steady climb since mid-May, 20%+ returns YTD.…

— ecoinometrics (@ecoinometrics) June 24, 2024

An inflow of liquidity is a necessary strong stimulus for the Bitcoin price increase to continue. A significant upward reversal could result from any indication of a Fed turn.

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