Over the past 10 days, withdrawals from spot Bitcoin ETFs have surpassed $1 billion, marking a significant downturn in investor sentiment. On Monday, June 24, not a single Bitcoin exchange-traded fund (ETF) experienced any kind of inflow, resulting in a combined outflow of $174.5 million across all ETFs. This continuous downward trend coincides with the declining price of Bitcoin (BTC).
Bitcoin exchange-traded funds (ETFs) have incurred a staggering loss of $545 million so far, signaling a challenging period for the cryptocurrency market. The Grayscale Bitcoin ETF (GBTC) saw the largest withdrawals on Monday, with a total of $90.4 million being pulled out. This brings the total outflow from GBTC to nearly $18.5 billion since its inception.
Fidelity’s FBTC also experienced significant outflows, with $35 million being withdrawn on Monday. Despite having an asset under management (AUM) below $10 billion, FBTC has been consistently losing funds since mid-June. The struggle is not unique to these ETFs, as other Bitcoin funds have also experienced withdrawals, although BlackRock’s IBIT remains unaffected. Nevertheless, the overall lack of inflows indicates a waning interest in these ETFs.
The recent sell-off highlights a declining enthusiasm for spot Bitcoin ETFs, further compounded by a decrease in institutional interest in Bitcoin due to global market unpredictability. Last week, $630 million was withdrawn from Bitcoin investment products, indicating a broader trend of diminishing confidence in the cryptocurrency.
The introduction of spot Bitcoin ETFs at the beginning of 2024 initially spurred strong gains for Bitcoin. However, the recent outflow of funds paints a troubling picture of eroding investor confidence in the asset. Today’s crypto news includes DWF Labs depositing 24 million JASMY tokens to Binance, further reflecting the current state of the cryptocurrency market.