The past week saw a continued trend of significant outflows from spot Bitcoin exchange-traded funds (ETFs), with a total net outflow surpassing $544 million. Farside Investors reported that on June 21, spot Bitcoin ETFs experienced net outflows of $105.9 million, marking the sixth consecutive day with outflows exceeding $100 million.
The majority of these outflows were observed in three major funds: the Fidelity Wise Origin Bitcoin Fund (FBTC) saw $44.8 million flowing out, the Grayscale Bitcoin Trust (GBTC) experienced outflows of $34.2 million, and the ARK 21Shares Bitcoin ETF (ARKB) had $28.8 million leaving the fund.
While the overall sentiment in the market remains bearish, not all ETFs followed this trend. The Franklin Bitcoin ETF (EZBC) actually saw an inflow of $1.9 million on the same day, bucking the outflow trend. On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF in terms of holdings, remained neutral with no significant changes.
This recent trend of outflows is worth noting, especially after spot Bitcoin ETFs experienced $580.6 million in net outflows just the previous week. This shift follows four consecutive weeks of net inflows, which added a total of around $4 billion to these investment products.
The broader cryptocurrency market is currently experiencing heightened fear, uncertainty, and doubt (FUD), which is reflected in Bitcoin’s price dipping below the $64,500 mark. On-chain data also shows significant activity among Bitcoin whales, who have sold approximately $1.2 billion worth of BTC over the past two weeks. This selling trend coincided with the negative net flows in spot BTC ETFs.
CryptoQuant CEO Ki Young Ju warned that if this sell-side liquidity is not absorbed over the counter, it could lead to more BTC being deposited on exchanges, potentially impacting the market further. Despite a slight rebound in Bitcoin’s price, with an increase of around $750 in the last 24 hours according to CoinGecko, the coin has still faced a 7.2% decline over the past 14 days, highlighting the ongoing market volatility.
