According to Blockworks, US spot bitcoin ETFs have seen net outflows for a seventh consecutive trading day, tying a record set earlier this year. The 10 funds, monitored by Farside Investors, have collectively lost assets each trading day from June 13 to June 24, excluding the Juneteenth federal holiday. The outflows have amounted to approximately $1.1 billion over these seven days, averaging $162 million per day.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) has experienced more capital withdrawal than the outflow-leading Grayscale Bitcoin Trust ETF (GBTC). However, the segment’s asset leader, BlackRock’s iShares Bitcoin Trust (IBIT), has managed to maintain slight inflows of about $21 million during this period. Overall, the net inflows of the fund category since their January launches have decreased to around $14.4 billion.
This streak of outflows is almost unprecedented, with seven consecutive days of outflows occurring only once before, from April 24 to May 2, according to Farside Investors data. The negative flows during that period were slightly heavier, totaling about $1.2 billion. About half of this amount, $564 million, was withdrawn on May 1 alone.
Analysts have partially attributed the outflow streak from April 24 to May 2 to investors taking profits after seeing significant price appreciation on their shares. The current net outflow streak coincides with a substantial dip in BTC price, which briefly fell below $60,000 on Monday and was around $61,760 at 11 am ET Tuesday, down 7% from a week ago.
Industry analysts and executives have pointed out the absence of near-term catalysts for the asset, given the upcoming Mt. Gox repayments, miners selling their BTC holdings, and the Fed's decision to keep interest rates steady earlier this month. However, some anticipate bitcoin to reach a new all-time high above $73,000 in the coming months due to inflationary pressures, a potential Fed interest rate cut, and continued institutional adoption. The outcome of the US election in November could also act as a catalyst for BTC, depending on the winner.