Key Points
- US Spot Bitcoin ETFs experienced a $174.45 million net outflow on June 24th, 2024.
- Grayscale’s GBTC fund led the outflow, losing $90 million.
US Spot Bitcoin Exchange-traded funds (ETFs) are currently undergoing a period of investor pessimism.
On Monday, June 24th, 2024, they recorded a combined net outflow of $174.45 million.
This marks the seventh consecutive day of a negative trend for these investment vehicles, suggesting a growing lack of confidence in the short-term prospects of Bitcoin.
Leading Funds in the Outflow
The industry-leading GBTC fund from Grayscale was the biggest loser, with a significant outflow of $90 million.
Fidelity’s FBTC wasn’t far behind, with $35 million in net outflows recorded on the same day.
This trend extended to other major players like Franklin Templeton’s EZBC, which experienced its first net outflow since May 2nd, amounting to $20.8 million.
VanEck’s HODL, Bitwise’s BITB, Ark Invest/21Shares’ ARKB fund, Invesco and Galaxy Digital’s BTCO all experienced outflows of varying amounts.
Interestingly, BlackRock’s IBIT, the leading Spot Bitcoin ETF by net asset value, managed to break even on June 25, recording zero net flows.
Impact of Bitcoin’s Price Drop
The recent exit from Spot Bitcoin ETFs has been influenced by a significant drop in Bitcoin’s price.
On Monday, Bitcoin fell to its lowest level in nearly six weeks, briefly dipping below the crucial $60,000 mark.
At the moment, Bitcoin is trading at $60,719, marking a 3.36% decline in the last 24 hours.
Analysts believe this price correction stems from a significant announcement by Mt. Gox, the infamous crypto exchange that went bankrupt in 2014 after a series of devastating hacks.
Mt. Gox announced plans to distribute $9 billion worth of Bitcoin and Bitcoin Cash repayments to creditors starting in July.
This announcement led to a “classic sell-the-news scenario”, causing investors to fear an influx of supply that could flood the market and lead to further price drops.
With Bitcoin’s price wavering and Spot Bitcoin ETFs seeing significant outflows, the Mt. Gox repayments are a wild card, and their impact on Bitcoin’s price trajectory remains uncertain.
The return or continued caution of investors will shape the market trend.
