As a long-term crypto investor with a background in financial markets, I’ve seen my fair share of market volatility and trends. The current sell-off in Bitcoin (BTC) and the massive outflows from spot Bitcoin ETFs are concerning, to say the least.
The price of Bitcoin (BTC) has been declining, leading to significant withdrawals from US-listed Bitcoin ETFs. On June 24 alone, these ETFs experienced outflows totaling $174.5 billion, with no inflows reported. In the previous ten days, the cumulative outflows surpassed the $1 billion mark.
Bitcoin ETFs Continue to Bleed
As a researcher studying the cryptocurrency market, I’ve observed significant outflows totaling $545 million from Bitcoin ETFs this week. Among these, Grayscale Bitcoin ETF (GBTC) saw the largest outflow on Monday, with investors withdrawing $90.4 million. This latest withdrawal brings GBTC’s total outflows since inception close to a staggering $18.5 billion.
On Monday, Fidelity’s FBTC experienced the second-largest withdrawal of $35 million. Since mid-June, this fund has faced continuous outflows, causing its assets under management (AUM) to dip below the $10 billion mark.
As an analyst, I’ve noticed that while various other Bitcoin Exchange-Traded Funds (ETFs) have experienced net withdrawals, BlackRock’s Bitcoin iShares ETF (IBIT) has not seen a single outflow since its launch. However, it is important to mention that there have been some instances of no inflows recently.
It appears that the initial fervor surrounding the introduction of spot Bitcoin ETFs is starting to fade, as evidenced by the recent selling wave. Moreover, institutional interest in Bitcoin has been on a downward trend amidst global market instability. Last week alone, Bitcoin-related investment products experienced $630 million in outflows.
Bitcoin Underperforms the US Stock Market
During the recent correction in Bitcoin’s price, there has been a significant disparity between Bitcoin and the US stock market, particularly the Nasdaq index. To begin with, Bitcoin started the year 2024 on a strong note, racking up impressive gains following the introduction of spot Bitcoin ETFs. However, the second quarter has seen more of a pause as Bitcoin’s price remains within a limited range.
Instead of “On the other hand,” you could use “In contrast”: Since mid-May, the NASDAQ has seen consistent growth, with its year-to-date increase surpassing 20%. This indicates that tech stocks are currently outperforming Bitcoin.
As a researcher studying the financial markets, I can tell you that Bitcoin kicked off the new year with an impressive surge. Its growth outstripped that of the stock market remarkably, largely due to the much-anticipated debut of Bitcoin-linked Exchange Traded Funds (ETFs).
As a crypto investor, I’ve noticed an intriguing divergence in the trends between Bitcoin and the NASDAQ recently. While Bitcoin showed early gains, it has now entered a range-bound phase. On the other hand, the NASDAQ has been consistently climbing since mid-May, delivering over 20% returns year to date.
— ecoinometrics (@ecoinometrics) June 24, 2024
To keep the Bitcoin price surge going, a significant catalyst is necessary in the form of increased liquidity. A hint of the Federal Reserve changing course could trigger a powerful upturn instead.
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2024-06-25 07:44