At the close of the week, there was a notable increase in outflows from spot Bitcoin (BTC) exchange-traded funds (ETFs), leading to total net outflows surpassing $544 million.
According to data from Farside Investors, spot Bitcoin ETFs recorded net outflows amounting to $105.9 million on June 21st, marking the sixth consecutive day with outflows exceeding $100 million. The majority of these outflows originated from three major funds: Fidelity Wise Origin Bitcoin Fund (FBTC) with $44.8 million, Grayscale Bitcoin Trust (GBTC) with $34.2 million, and ARK 21Shares Bitcoin ETF (ARKB) with $28.8 million.
Despite this bearish sentiment in the market, not all ETFs followed suit. Franklin Bitcoin ETF (EZBC) defied the trend, attracting an inflow of $1.9 million on the same day. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF by holdings, remained stable with no significant changes.
The recent trend of outflows is significant, particularly following last week’s net outflows of $580.6 million from spot Bitcoin ETFs. This downturn comes after four consecutive weeks of net inflows that collectively added approximately $4 billion to these investment products.
The broader cryptocurrency market has been grappling with heightened fear, uncertainty, and doubt (FUD), a sentiment that has impacted Bitcoin’s price, dipping below the $64,500 mark. On-chain data indicates substantial activity among Bitcoin whales, who have sold about $1.2 billion worth of BTC over the past two weeks. This selling pressure coincides with the negative net flows observed in spot BTC ETFs.
CryptoQuant CEO Ki Young Ju cautioned that unless this sell-side liquidity is absorbed through over-the-counter channels, it could lead to further BTC deposits on exchanges, potentially exacerbating market conditions.
Bitcoin’s price has faced challenges in recent weeks, dropping to $63,500 on June 21st before rebounding slightly by $750 in the last 24 hours, as reported by CoinGecko. Despite this recovery, the coin has seen a 7.2% decline over the past fortnight, underscoring the ongoing volatility in the market.