Spot Bitcoin ETF Flows Sag as Crypto Price Drops

ETF Investment Vehicles

After recovering for weeks, flows into spot Bitcoin ETFs have fallen into negative territory on three of the last four days as the price of their underlying asset has fallen.

According to research by UK-based asset manager Farside Investors, a total outflow of more than $300 million occurred from 11 funds during the week. Tuesday’s outflows broke a 19-day streak of entries for the barely five-month-old product that has tracked the largest cryptocurrency by market cap.

Grayscale Bitcoin Trust (GBTC) outflows totaled more than $226 million; This was the highest outflow among spot Bitcoin ETFs. The fund, which is a conversion from a foundation, carries the highest fee among the products. But the wildly successful Fidelity Wise Origin Bitcoin Fund (FBTC) has recorded rare outflows of more than $116 million on three separate days, including $106 million on Thursday. The fund has brought in more than $9.5 million since its launch on January 11.

Even the BlackRock Bitcoin Trust (IBIT), which has $17.6 billion in spot Bitcoin assets, has seen only mild interest, generating just $38 million in inflows for the week.

etf.com: FBTC streams

On June 4, spot bitcoin ETFs generated $886 million in inflows, the second-highest total in the fund’s history. and there was an inflow of $1.8 billion per week.

According to crypto markets data provider CoinMarketCap, the price of Bitcoin has fallen more than 7% in seven days to around $65,000; This is the lowest level in a month. Market observers say the decline is likely due to miners selling assets to improve their balance sheets and, to a lesser extent, large investors taking profits.

“BTC spot ETF flows generally tend to be a function of price,” analyst Noelle Acheson, author of the Crypto Is Macro Now newsletter, wrote to etf.com via Telegram. He added that miners are “probably” responsible for the Bitcoin selling pressure.

“This is typical of the post-halving cycle, as unprofitable miners shut down machines and sell their BTC reserves, and optimistic miners who want to wait for the market to recover may sell BTC to cover operating expenses.”

Bitcoin Price Drop

Transfers from mining pools to Binance, the world’s largest cryptocurrency exchange, on June 9 reached a 2-month high of over 3,000 bitcoins, according to data from analytics firm CryptoQuant. “This change is consistent with the price correction that brought #Bitcoin down to $66K,” the firm wrote in X post on Thursday.

The firm also noted that on June 10, miners sold an additional 1,200 bitcoins through over-the-counter desks, “the highest daily volume in more than two months.”

The story continues

The movement of tokens onto trading platforms often signals that digital asset holders want to sell.

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