The U.S. spot Bitcoin ETF Bitcoin spot is turning its back on capital as the wave of withdrawals skyrocketed to $106 million in a single day, according to data from Spotonchain. This has also pushed daily losses for Bitcoin ETFs nearly $545 million in the hole between the week. While institutional players head for the door, retail investors are having themselves a little think as well.
To give an idea of the pain being felt at the individual fund level, The most heavily impacted saw $44.8 million of outflows just in a day from Fidelitys FBTC, with substantial outflows from Grayscales GBTC and Ark Invests ARKB, indicating widespread nervousness in the sector.
🚨 $BTC #ETF Net Inflow June 21, 2024: -$106M!• The net inflow has been negative for the entire trading week (total outflow: $545M).• #Grayscale (GBTC) experienced an outflow of $34.2M while #BlackRock (IBIT) had a net flow of $0 yesterday.• The cumulative total net… pic.twitter.com/gbtaF34rJw
— Spot On Chain (@spotonchain) June 22, 2024
However, Franklin Bitcoin ETF (EZBC) managed to buck the trend somewhat by recording a small inflow of $1.9 million despite the heavy selling, so it seems not all areas of the ETF landscape have fallen from grace.
Market Impact and Future Outlook
And this recent heavy outflow trend coincides with *BTC* price back down at $63,370 – levels last seen in mid-May. Altcoins suffer twice the plunge as broader crypto market crashes This decline is attributed to recent volatility in the market and the uncertainty of regulatory clarity that has enveloped the cryptocurrency environment.
These developments are being closely observed by investors as well as the market spectators, concerned about the dwindling value of assets managed by spot Bitcoin ETFs which have dropped to a cumulative $55.547 billion.
The net inflows have declined to only $14.56 billion after 112 trading days signaling the traders take a cautious or bearish view of things. The ongoing net redemptions from Bitcoin ETFs bring into question the level of maturity; stability and long term track records necessary for cryptocurrency to be accepted in a larger context as part of the traditional financial system.