TL;DR
- Bitcoin ETFs in the U.S. saw net outflows of $65 million on Monday, breaking a 19-day streak of net inflows.
- Grayscale’s GBTC led the outflows with $40 million, accumulating a total of $18 billion in withdrawals since January.
- The economic context is uncertain, with key events like the CPI release and the FOMC meeting contributing to market volatility and the decline in Bitcoin prices.
On Monday, U.S.-listed Bitcoin exchange-traded funds (ETFs) experienced a net outflow of $65 million, ending a 19-day streak of consecutive net inflows. The shift in capital flow occurred due to uncertainty in global financial markets and a general decline in the value of cryptocurrencies.
Grayscale’s GBTC led in terms of outflows, registering $40 million in divestments. The fund has maintained a consistent trend of outflows since its launch in January, accumulating a total of $18 billion in withdrawals to date, underscoring its persistent negative performance.
Bitcoin ETF Flow (US$ million) – 2024-06-10
TOTAL NET FLOW: -64.9
(Provisional data)IBIT: 6.3
FBTC: -3
BITB: 7.6
ARKB: 0
BTCO: -20.5
EZBC: 0
BRRR: -15.8
HODL: 0
BTCW: 0
GBTC: -39.5
DEFI: 0For all the data & disclaimers visit:https://t.co/4ISlrCgZdk
— Farside Investors (@FarsideUK) June 11, 2024
Invesco and Galaxy Digital also reported significant outflows through their combined ETF, BITCO, which saw $20 million in net withdrawals. Valkyrie’s BRRR ETF experienced outflows totaling $16 million, while Fidelity’s FBTC recorded $3 million in outflows, marking its first negative flow experience since early May.
Bitcoin and the Crypto Market Fall in Tandem
The net outflows occurred following a recent recovery period during which Bitcoin ETFs managed to accumulate over $4 billion in 19 days of trading. The last time a significant net outflow was recorded was on May 10, with a total of $84 million, after an unfavorable April that was also marked by weeks of consistent outflows.
The economic context played a crucial role in market movements. Investors have shown concern ahead of a week that promises to be volatile, with key events such as the U.S. Consumer Price Index (CPI) release scheduled for Wednesday and an anticipated speech by U.S. Treasury Secretary Janet Yellen on Friday. Additionally, the Federal Open Market Committee (FOMC) meeting starting today adds further uncertainty, as the monetary policy decisions made could significantly influence risk assets, including cryptocurrencies.
Bitcoin’s price has been hit by this uncertainty, suffering a 3.77% drop in the last 24 hours. The cryptocurrency briefly reached a two-month high last week, surpassing $70,000 before beginning to retreat. It is currently trading at $66,879.
