Net outflows for Bitcoin ETFs: what’s happening?

Bitcoin ETFs Experience Outflows for Fifth Consecutive Day

Exchange-traded funds (ETFs) on Bitcoin, listed in the United States, have seen their fifth consecutive day of outflows, ending last week with total losses of over $900 million.
According to data monitored by SoSoValue, the 11 listed ETFs lost $140 million just on Thursday, the 20th, with a trading volume of $1.1 billion.

Grayscale’s ETF, GBTC, which has mostly experienced outflows since being converted to an ETF in January, led the losses with $53 million, followed by Fidelity’s ETF, FBTC, with $51 million.
BlackRock’s IBIT, the largest ETF by managed assets, was the only product to record net inflows of $1 million, while the other products showed no inflow or outflow activity.

This outflow activity marks the worst since late April, when a net outflow of $1.2 billion was recorded in trading sessions from April 24th to May 2nd.
In the following 19 trading days, inflows resumed, adding over $4 billion before the current outflow trend that started on June 10th.

As observed, the price of Bitcoin has generally suffered in recent weeks due to sales of around $1 billion from whales but also because of the strength of the dollar and the bullish momentum of the U.S.
tech index, up 18% in the last six months, which have played against the cryptocurrency.

The outflow trend highlights a decrease in investor confidence in Bitcoin ETFs, likely influenced by macroeconomic conditions and cryptocurrency market fluctuations.
Investors may be concerned about the short-term performance of the digital currency, choosing to withdraw their funds from ETFs and reduce exposure to potential losses.

Despite the volatility and recent challenges, Bitcoin ETFs remain a significant reference point for cryptocurrency investment, offering investors a regulated and accessible way to gain exposure to Bitcoin; waiting for a new bullish cycle to bring positive flows back into the ETFs.

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