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Bitcoin ETF Capital Drain Deepens With $139 Million Outflow

Published 06/21/2024, 06:12 AM
Updated 06/21/2024, 09:30 AM
Bitcoin ETF Capital Drain Deepens With $139 Million Outflow

U.Today - The spot Bitcoin ETF ecosystem has continued to lose capital in what is a sustained bearish trend for the asset class. It remains unclear why Wall Street has continued to capitulate on its once aggressive Bitcoin ETF embrace, but the current disposition has triggered a sustained drawdown in the price of Bitcoin.

Per data from SoSoValue, a total of $139.98 million left spot Bitcoin ETFs on June 20. Grayscale Investments’ GBTC turned out to be the biggest loser, with a total outflow of $53 million. Fidelity Investments came second, with investors pulling out $51 million.

Bitwise (BITB) also saw a total outflow of $32 million, while VanEck recorded $4 million in capital drain relative to its size. Invesco Galaxy Digital's offering saw a total of $2 million.

Not all the spot Bitcoin ETF products recorded outflows as BlackRock’s iShares Bitcoin Trust (IBIT) broke the trend. The product recorded a daily volume of $565 million, while the net inflow came in at $1 million. There is a very thin line between Bitcoin ETF inflows and outflows, and from current market data, the products in question all showcased some form of an uptick in trading volume.

Over the past week, spot Bitcoin ETF products have recorded a net outflow of $900 million as June 20 marked the fifth straight day of outflows. This marks the product’s worst performance since mid-April, shortly after the short inflow stint mid-month.

The impact of these bearish Bitcoin ETF trends has also trickled down to the lackluster performance of BTC. Over the past 24 hours, the price of the coin has dropped by 2.8%, and it is trading at $63,784.68. Bitcoin’s trading volume is up 33.93% to $25,990,936,338, shining a light of confidence.

With this rebooted sentiment and hopes for a rebound on the spot Bitcoin ETF market, the price of the coin might reroute its trend in the short term.

This article was originally published on U.Today

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