Here’s How Much Outflow Bitcoin Spot ETFs Saw Last Week As BTC Down 3%

Most domestic Bitcoin ETFs in the United States have started to see substantial withdrawals, with the total amount soaring to over $500 million in the past week alone, even though it was only a four-day trading week .

These developments have certainly hurt BTC price movements, which have been closely linked to ETF flows.

Spot ETF exits soar

Since mid-January, when the US SEC reluctantly approved nearly a dozen one-off Bitcoin ETFs, these financial vehicles have been at the forefront of investor adoption, especially among those who abstained to enter the scene before this regulatory approval.

There have been some established trends over the last five months or so. It all started on a pretty positive note as ETFs experienced back-to-back days of inflows from January 26 to February 20. Things changed in late April and early May when investors pulled back heavily, especially on May 1st.

The tides turned again between mid-May and early June, when ETFs set their longest streak of positive flows (19 days). However, uncertainty in the US economy, including the Fed’s refusal to cut interest rates, has turned things around in the last ten days or so.

In fact, there have been exits in the last eight out of nine trading days. The only exception was June 12, with $100.8 million in admissions.

Last week, although trading on Wall Street was only open for four days, only withdrawals were seen. According to FarSide, only $550 million was taken out of ETFs.

Interestingly, Fidelity’s FBTC has seen the most exits, surpassing even Grayscale’s GBTC. On Friday, $44.8 million was withdrawn from FBTC and $34.2 million from GBTC. Ark Invest’s ARKB was also in the red.

BTC price drops

As mentioned above, BTC price movements have been strongly correlated with ETF flows. So it’s no surprise that the underlying asset has underperformed over the past week.

Aside from a brief rise from $66,000 to $67,200 on Monday, bitcoin has been mostly losing value. This culminated yesterday evening when it fell to a five-week low of $63,300. Although it has recovered about a million since then, BTC is still down about 3% on the week and its market cap is down to $1.265 trillion.

Bitcoin/Price/Chart 22.06.2024, Source: TradingView SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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