Investors Withdraw $1.1 Billion from Bitcoin Spot ETFs
Bitcoin spot ETFs have seen significant net outflows recently, with seven consecutive days of the trend continuing. On June 24 alone, these products experienced a total net outflow of $174 million, according to data from Farside Investors.
- Grayscale ETF GBTC contributed to this figure with a net outflow of $90.4295 million in a single day.
- The total net asset value of the Bitcoin spot ETF currently stands at $51.53 billion.
- Data from Farside Investors shows that spot bitcoin ETFs have seen the largest outflows in a two-week period since the approval of U.S. spot bitcoin ETFs in January.
- Investors have withdrawn a net total of $1.1 billion from these funds during this timeframe.
Digital Investment Products Face $584M in Outflows
Digital asset investment products have encountered another week of outflows, totaling $584 million. This pessimism among investors is likely due to concerns over potential interest rate cuts by the Federal Reserve.
- Last week saw the lowest trading volumes on ETPs globally since the launch of U.S. ETFs in January, with only $6.9 billion traded throughout the week.
- The United States witnessed the largest outflows of $475 million, followed by Canada with significant outflows of $109 million.
- Germany and Hong Kong observed outflows of $24 million and $19 million, respectively.
- Switzerland and Brazil, however, saw inflows of $39 million and $48.5 million, respectively.
Bitcoin Price Declines Below $60,000
June has presented challenges for Bitcoin, with its price briefly dropping below the $60,000 level after showing potential to surpass the previous all-time high of over $73,000 earlier in the month.
- A looming distribution of Bitcoin owed to former customers of the defunct crypto exchange Mt. Gox adds to the negative news.
- Mt. Gox, which declared bankruptcy over a decade ago following multiple hacking incidents, is set to begin the process of returning assets to its customers in July.
- Estimates for the amount of Bitcoin to be distributed range from 65,000 to 140,000 BTC, potentially valued at up to $9 billion.
- Concerns have arisen regarding the impact of this influx on prices, with some questioning the potential selling pressure’s magnitude.
Hot Take: Bitcoin Investors Pull Out $1.1 Billion from Spot ETFs
Bitcoin spot ETFs have been experiencing significant net outflows, with investors withdrawing a total of $1.1 billion over a two-week period. The recent trend of outflows has raised concerns about the market sentiment towards Bitcoin as investors grapple with uncertainties surrounding interest rate cuts and a potential influx of BTC from Mt. Gox. It remains to be seen how these factors will impact the cryptocurrency’s price and investor confidence moving forward.
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