Hawkish Fed Stand Led to $620 Million Outflows from Bitcoin Last Week

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As a researcher with a background in financial markets and digital assets, I find the latest CoinShares report on digital asset investment products fascinating. The significant outflows totaling $600 million during the last week, primarily driven by Bitcoin ETFs, is a clear indication of prevailing bearish sentiment in the market.

As an analyst, I’ve reviewed the recent report from CoinShares revealing a total withdrawal of $600 million from digital asset investment products over the past week. This shift occurred following a more aggressive-than-anticipated Federal Open Market Committee (FOMC) meeting.

Bitcoin ETF Outflow Skyrocketed Last Week

As a researcher studying the recent trends in Bitcoin Exchange-Traded Funds (ETFs), I’ve observed that outflows from US spot Bitcoin ETFs accounted for the majority of the total outflows last week. Among these, Grayscale’s GBTC ETF experienced the largest withdrawal with an amount of $274.3 million. Additionally, Ark Invest’s ARKB and Fidelity’s FBTC recorded net outflows worth $149.7 million and $146.3 million respectively.

In contrast, BlackRock’s Bitcoin iShares Investment Trust (IBIT) was the sole Bitcoin ETF to see net inflows last week, with investments amounting to $41.6 million. Consequently, the cumulative net inflows for spot Bitcoin ETFs since their inception now stand at $15.1 billion.

Prior to the past week, Bitcoin ETFs experienced 19 consecutive days with substantial investments totaling over $4 billion. However, this trend was disrupted last Monday as these ETFs reported net withdrawals amounting to $64.9 million. In the vicinity of the FOMC meeting, there were daily outflows worth approximately $200 million.

BTC Led the Total Outflows From Global Investment Products

Last week, a substantial amount of $621 million flowed exclusively into Bitcoin investments, mirroring the dominant bearish market attitude. Concurrently, investors added $1.8 million to short Bitcoin positions. Consequently, Bitcoin’s price experienced a 7% decrease during this period.

In his latest CoinShares report, James Butterfill noted that outflows and a recent price drop led to a decrease in total assets under management (AuM), which fell from over US$100 billion to US$94 billion during the week.

As an analyst, I’ve noticed that the trading volume for the past week decreased to $11 billion, which is significantly lower than the average weekly trading volume of $22 billion in 2023. Nevertheless, this current figure remains notably higher than the $2 billion per week mark we hit last year.

As an analyst, I’ve noticed that most of the $565 million worth of outflows occurred in the US markets. However, it’s important to note that this trend wasn’t isolated to the US; Canada, Switzerland, and Sweden each experienced outflows totaling $15 million, $24 million, and $15 million, respectively. Intriguingly, while many investors were pulling their funds out, Germany saw an inflow of $17 million, making it an interesting exception to the general trend of outflows.

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2024-06-17 16:05