Bitcoin Spot ETFs See Net Outflows After 19 Consecutive Days of Inflows

Bitcoin Spot ETFs
Last updated:
Author
Ruholamin Haqshanas
Author Categories
About Author

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...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Bitcoin spot exchange-traded funds (ETFs) have experienced their first net outflows in nearly a month.

According to Farside Investors, a total of 11 U.S. spot Bitcoin ETFs collectively witnessed a net outflow of $64.9 million, which comes after a remarkable streak of 19 consecutive days of net inflows.

Among the Bitcoin spot ETFs, the Grayscale Bitcoin Trust (GBTC) stood out with the largest net outflow of $39.5 million.

Following closely behind was the Invesco Galaxy Bitcoin ETF (BTCO) with $20.5 million in net outflows.

The Fidelity Wise Origin Bitcoin Fund (FBTC) also experienced a minor outflow of $3 million.

On the other hand, Bitwise and BlackRock’s ETFs saw modest inflows of $7.6 million and $6.3 million, respectively.

Bitcoin Price Drops After ETF Outflows

The outflows from the ETFs coincided with a decline in the price of Bitcoin.

Over the past 12 hours, Bitcoin’s value dropped from just above $70,000 to below $68,000, resulting in $170 million in liquidations and exerting downward pressure on the entire cryptocurrency market.

In the preceding week, BTC spot ETFs had consistently observed strong inflows, with net inflows recorded on each trading day.

The total net inflow for the week amounted to approximately $1.83 billion, reaching levels of demand not seen since early March, Matteo Greco, a research analyst at digital asset investment firm Fineqia International, said in a recent note.

The cumulative net inflow since the inception of these ETFs has now reached a record high of about $15.7 billion.

The integration of Bitcoin into traditional finance is expanding globally.

Following the launch of Australia’s first BTC spot ETF, the Thailand Securities and Exchange Commission (SEC) recently approved One Asset Management to introduce Thailand’s inaugural BTC spot ETF.

Central Banks Cut Rate

On the macroeconomic front, both the Bank of Canada (BOC) and the European Central Bank (ECB) have cut interest rates by 25 basis points.

Despite inflation levels surpassing the central banks’ 2% annual target, these rate cuts indicate governments’ optimistic expectations about their ability to manage inflation while implementing less restrictive monetary policies.

Less restrictive monetary policies are generally favorable for risk-on assets, including stocks and digital assets like Bitcoin, particularly when rate cuts do not signal an imminent recession.

In this case, the central banks’ decision to reduce rates despite higher-than-target inflation suggests confidence in their ability to control and maintain inflation near desired levels, even with more expansionary monetary policies.

Meanwhile, the U.S. Bureau of Labor Statistics is set to release May figures for its inflation-measuring Consumer Price Index (CPI) on June 11.

Analysts have forecast inflation to rise 0.1% after a 0.5% bump in April, bringing the year-on-year figure to 3.4% with core inflation forecast to rise 0.3% in May, the same as April, Morningstar reported.

The Fed’s monetary policy is also to be decided at a two-day Federal Open Market Committee (FOMC) meeting starting the same day.

More Articles

Features
Linea Airdrop: Will the Token Fail or Breathe Life into L2s?
Olga Primakova
Olga Primakova
2025-02-10 16:32:37
Blockchain News
Crypto Mixers Used Less By Ransomware Criminals, AI Agents Pose New Threat
Rachel Wolfson
Rachel Wolfson
2025-02-10 16:25:01
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors