Bitcoin ETFs Continue Bleeding — $140 Million Outflow Registered

by

As an experienced financial analyst, I find the recent trend of Bitcoin exchange-traded funds (ETFs) experiencing significant outflows concerning. Over the past five days, Grayscale has lost a substantial amount of $232 million, and this is only second to Fidelity’s loss of $413 million during the same period. The gradual plunge in Bitcoin’s price by nearly 5.2% while these outflows take place adds to my worry.

A recent report indicates that on June 20th, there was a substantial withdrawal of $140 million from Bitcoin spot exchange-traded funds (ETFs). This marks the fifth straight day of Bitcoin outflows from these financial instruments.

This data was shared by popular cryptocurrency journalist and blogger Colin Wu on his X account. Wu specified that Grayscale’s ETF, GBTC, lost $53.1 million in a single day. BlackRock’s ETF IBIT faced an outflow of $1.4791 million. However, currently, IBIT holds a total of $17.643 billion in BTC holdings.

On June 20th, Bitcoin spot ETFs experienced a collective outflow of $140 million, marking the fifth consecutive day with net withdrawals. Grayscale Bitcoin Trust (GBTC) recorded an individual outflow of $53.1022 million, while BlackRock’s InfoTech ETF (IBIT) saw a modest inflow of $1.4791 million. At present, the historical net flow for these ETFs shows a trend.— Wu Blockchain (@WuBlockchain) June 21, 2024

As an analyst, I’ve calculated that Grayscale experienced a loss of approximately $232 million over the last five days. However, it’s important to note that this is less than Fidelity’s (FBTC) losses during the same time frame, which amounted to around $413 million.

During the past week, Bitcoin, the leading cryptocurrency in the world, experienced a gradual decline, dropping approximately 5.2% and losing its hold above the $67,000 price mark. Currently, Bitcoin is being traded at around $63,880.

Smart whale sells large BTC chunk

According to @lookonchain’s analysis, an astute trader moved 660 Bitcoin to Binance for selling, concurrently with ETFs offloading their BTC holdings. Previous profitable transactions from this whale were also highlighted in the tweet.

Over the past year, I’ve made two significant transactions involving Bitcoin, each resulting in substantial profits exceeding $15 million apiece, totaling over $30 million in gains.

With his sharp investment acumen, he has successfully executed two Bitcoin transactions in the past year, raking in over $30 million in profits each time. Most recently, just five hours ago, he transferred all 660 BTC (worth approximately $42.85M) to Binance with the intention of reaping further gains. Between August 9 and November 2, 2023, he purchased 718 BTC at an average price of $29,385. Subsequently, between December 15 and an undetermined date, he sold these Bitcoins at an average selling price of $41,953.— Lookonchain (@lookonchain) June 21, 2024

Last year between August and November, a trader bought a substantial amount of Bitcoins, specifically 718 coins, for approximately $29,385 each. In the following month of December, they successfully sold these Bitcoins at a higher price of around $41,953 per coin, resulting in a total profit of roughly $9 million or a 43% increase in value.

Approximately 1,181 Bitcoins were acquired by the trader in question between February and May 13 of this year in the second transaction. Subsequently, they sold these Bitcoins on May 27 and June 20, resulting in a profit of around $21.2 million or a 37% increase.

Read More

2024-06-21 14:41