Bitcoin ETFs Continue to Bleed With Zero Inflows, Are Institutions Panicking?
While the Bitcoin (BTC) price continues to hit lows, spot Bitcoin ETFs in the US continue to witness massive outflows for seven consecutive days. On Monday, June 24, total outflows across all nine spot Bitcoin ETFs were $174.5 billion, with none of the ETFs recording any inflows. Total outflow from spot Bitcoin ETFs in the last ten days has exceeded $1 billion.
Bitcoin ETFs Continue to Bleed
After seeing a $545 million outflow, Bitcoin ETFs continue to bleed from this week. Grayscale Bitcoin ETF GBTC, which contributed to Monday’s outflows, recorded the largest outflow with $90.4 million, according to Farside Investors data. This brings the total outflow from GBTC since its inception to almost $18.5 billion.
Fidelity’s FBTC took the second biggest hit with a $35 million outflow on Monday. Since mid-June, FBTC has been seeing consistent outflows with AUM falling below $10 billion.
While some other Bitcoin ETFs have recorded outflows, BlackRcok’s IBIT has not recorded a single outflow since its inception. However, there have been multiple instances of zero entry recently.
This current sell-off clearly shows that the initial excitement around the launch of spot Bitcoin ETFs has faded. So institutional interest in Bitcoin is declining unceremoniously along with the global market. Last week, $630 million in outflows were recorded from Bitcoin investment products.
Also Read: Institutional Investors Are Selling $690 Million Worth of Bitcoin and Ethereum
Bitcoin Underperforms US Stock Market
Amidst the current BTC price correction, there has been a major divergence with the US stock market, specifically the Nasdaq index. As we know, Bitcoin started 2024 with impressive gains following the launch of spot Bitcoin ETFs. However, Q2 was more of a consolidation phase as the BTC price remained in a certain range.
On the other hand, since mid-May, the NASDAQ has continued to exhibit a steady rise, extending its year-to-date gains to over 20%. This clearly shows that tech stocks have an advantage over Bitcoin.
For the Bitcoin price rise to continue, it needs a strong catalyst in the form of liquidity infusion. Any signal of reversal from the Fed could lead to a strong reversal to the upside.
Also Read: Bitcoin (BTC) May Underperform Stocks and Bonds for Another Three Months, Here’s Why
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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