Spot Bitcoin ETFs Sheds $35M As Capital Exodus Continues

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As an experienced financial analyst, I’ve seen my fair share of market fluctuations, especially in the volatile world of cryptocurrencies. The latest news regarding spot Bitcoin ETFs registering significant outflows, with Grayscale and Invesco Galaxy leading the charge, is a cause for concern.

As a crypto investor, I’ve noticed that after an initial surge of investments, Bitcoin Spot ETFs have once again started seeing outflows. The latest outflow reached a significant figure of around $35 million.

Another Day of Spot Bitcoin ETF Outflows 

According to the latest report from blockchain analysis firm Lookonchain, Grayscale experienced an outflow of approximately 535 Bitcoins.

Approximately $30.7 million worth of Bitcoin was withdrawn from the investment asset management firm, reducing their holdings to around 274,734 units ($15.76 billion). Similarly, Invesco Galaxy Bitcoin ETF experienced an outflow of 74 Bitcoin, resulting in a remaining balance of approximately 6804 Bitcoin. The total Bitcoin outflows from both firms summed up to about 609 Bitcoin or $35 million.

July 4 Update:
Nine Exchange-Traded Funds (ETFs) collectively sold approximately 9 billion dollars’ worth of Bitcoin (BTC), representing a decrease of around $35 million in total. Among them, Grayscale reduced its holdings by about 535 million dollars’ worth of BTC, equivalent to a decrease of around $30.7 million, and currently holds approximately 274,724 BTC, valued at roughly $15.76 billion.
— Lookonchain (@lookonchain) July 4, 2024

The ETFs from BlackRock (IBIT), Fidelity (FBTC), ARK 21Shares (ARKB), and other US-based providers did not experience any withdrawals of investments last week. Among these, BlackRock manages the largest Bitcoin holdings with approximately 307,206 coins.

On Wednesday, the Bitcoin ETF experienced a smaller outflow, with over $20 million being withdrawn. Grayscale’s GBTC was responsible for most of this withdrawal, with $26.99 million leaving the fund. However, Fidelity’s FBTC saw a net inflow of $6.55 million, which helped offset some of the outflow.

As a crypto investor, I’d put it like this: Yesterday, BlackRock’s Bitcoin Investment Trust (IBIT) didn’t receive any new investments. The total trading volume for these Bitcoin funds amounted to $800 million on that day. This is a substantial decrease from the $995 million recorded on Tuesday.

The feelings of decreased trading activity and outgoing funds might signal a change in investor attitudes or market conditions. These shifts are common in the volatile cryptocurrency market.

Bitcoin Showing Bear Signs

As a crypto investor, I’ve noticed that the coins underpinning the ETFs are presently taking a hit and having a hard time holding onto their support levels. Lately, the value of this coin has taken a steep dive to around $57,000.

As a crypto investor, I’ve been taken aback by the unexpected downturn in the market, which has sparked intense discussions within our community. The selloff seems to be fueled by several factors. For one, speculative investors have been selling off their holdings in anticipation of Bitcoin ETFs being approved or denied. Additionally, the recent halving event may have played a role in dampening investor sentiment. Furthermore, the liquidation of overleveraged positions and unexpected sell-offs, such as the German and U.S. governments’ disposal of seized Bitcoins, have added to the market’s downward pressure.

According to economist and Bitcoin critic Peter Schiff, the decline in Bitcoin’s value may continue, possibly dropping below the $52,000 mark.

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2024-07-04 20:38