Bitcoin Spot ETFs Continue to See Massive Outflows as Bears Dominate Market

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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June 25, 2024 02:21 EDT

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Bitcoin spot ETFs have been experiencing significant net outflows, with the trend continuing for seven consecutive days.

On June 24, the products witnessed a total net outflow of $174 million, according to data from Farside Investors.

Grayscale ETF GBTC accounted for a net outflow of $90.4295 million in a single day, contributing to the overall figures. The total net asset value of the Bitcoin spot ETF currently stands at $51.53 billion.

Data from Farside Investors reveals that spot bitcoin ETFs have suffered the largest outflows over a two-week period since the approval of U.S. spot bitcoin ETFs in January.

Investors have withdrawn a net total of $1.1 billion from these funds during this timeframe.

On June 24, the Bitcoin spot ETF had a total net outflow of $174 million, with net outflows for seven consecutive days. Grayscale ETF GBTC had a net outflow of $90.4295 million in a single day, and the total net asset value of the Bitcoin spot ETF was $51.53 billion.…

— Wu Blockchain (@WuBlockchain) June 25, 2024

Digital Investment Products Suffer $584M in Outflows

Digital asset investment products, as a whole, experienced a second consecutive week of outflows, amounting to $584 million, according to a report from CoinShares.

The pessimism among investors regarding potential interest rate cuts by the Federal Reserve is believed to be a contributing factor.

Last week also saw the lowest trading volumes on ETPs globally since the launch of U.S. ETFs in January, with a total of just $6.9 billion traded throughout the week.

The United States witnessed the largest outflows, with $475 million being withdrawn, while Canada also experienced significant outflows amounting to $109 million.

Germany and Hong Kong observed outflows of $24 million and $19 million, respectively.

However, Switzerland and Brazil stood out with inflows of $39 million and $48.5 million, respectively.

Bitcoin saw the most substantial outflows of $630 million, but despite the negative sentiment, investors did not increase their short positions, as short bitcoin experienced outflows of $1.2 million.

Ethereum also faced negative sentiment with outflows of $58 million.

While several altcoins experienced price weakness, inflows were observed for some, including Solana, Litecoin, and Polygon, with inflows of $2.7 million, $1.3 million, and $1 million, respectively.

Interestingly, multi-asset products saw inflows of $98 million, indicating that some investors viewed the weakness in the altcoin market as a buying opportunity.

Bitcoin Price Drops Below $60,000

June has been a challenging month for Bitcoin, as its price briefly dropped below the $60,000 level after showing potential to surpass the previous all-time high of over $73,000 earlier in the month.

Adding to the negative news, the distribution of Bitcoin owed to former customers of the defunct crypto exchange Mt. Gox is looming.

The distribution could involve up to 140,000 BTC entering the market.

Mt. Gox, which filed for bankruptcy over a decade ago following multiple hacking incidents, announced it would initiate the long-awaited process of returning assets to its customers in July.

The exact amount of Bitcoin to be distributed remains uncertain, with estimates ranging from 65,000 to 140,000 BTC, potentially valued at up to $9 billion.

There have been concerns regarding the impact of this influx of BTC on prices.

However, some argue that the potential selling pressure may be overstated, given that creditors have had years to sell their claims if they required immediate funds.