Bitcoin ETFs Continue To Bleed With Zero Inflows, Institutions In Panic?
Highlights
- Bitcoin ETFs recorded $170 million outflows with BlackRock's IBIT recording zero inflows on Monday.
- Bitcoin investment products saw over $600 million flowing out as institutional players panic.
- Bitcoin's underperformance with US stock market continues as NASDAQ registers steady gains.
As the Bitcoin (BTC) price continues to hit lows, the spot Bitcoin ETFs in the US continue to witness major outflows for seven days in a row. On Monday, June 24, the total outflows across all nine spot Bitcoin ETFs was $174.5 billion, with none of the ETFs recording any kind of inflows. In the last ten days, the total outflows from the spot Bitcoin ETFs have exceeded $1 billion.
Bitcoin ETFs Continue to Bleed
After seeing $545 million in outflows, Bitcoin ETFs continue to bleed starting this week. Contributing to Monday’s outflows, Grayscale Bitcoin ETF GBTC recorded the most outflows at $90.4 million, as per data from Farside Investors. This has brought the total outflows from GBTC since inception, almost closer to $18.5 billion.
Fidelity’s FBTC suffered the second-biggest blow with $35 million in outflows on Monday. Since mid-June, FBTC has been seeing consistent outflows with the AUM dropping under $10 billion.
While several other Bitcoin ETFs have registered outflows, BlackRcok’s IBIT hasn’t recorded a single outflow since its inception. However, there have been multiple instances of zero inflows recently.
Well, this current sell-off clearly shows that the early excitement around the launch of the spot Bitcoin ETFs seems to be waning. Also, Bitcoin institutional interest has been dropping with the global market uncertainly. Last week, Bitcoin investment products registered $630 million worth of outflows.
Also Read: Institutional Investors Sell Bitcoin, Ethereum Worth $690M
Bitcoin Underperforms the US Stock Market
Amid the current BTC price correction, there’s been a huge divergence with the US stock market, especially the Nasdaq index. As we know, Bitcoin kicked-off the year 2024 with impressive gains following the launch of spot Bitcoin ETFs. However, the Q2 has been more of a consolidation phase as the BTC price remains range-bound.
On the other hand, since mid-May, the NASDAQ continued to show a steady climb extending its year-to-date gains to more than 20%. This clearly shows that the tech stocks have an edge over Bitcoin.
Bitcoin started the year with a bang. It outpaced the stock market significantly thanks to the launch of the ETFs.
But the recent trends show a divergence:
• Bitcoin – Despite the early gains, BTC is now range-bound.
• NASDAQ – Steady climb since mid-May, 20%+ returns YTD.… pic.twitter.com/ER72ut4irj— ecoinometrics (@ecoinometrics) June 24, 2024
For the Bitcoin price rally to continue, it needs a strong catalyst in the form of liquidity infusion. Any signal of Fed pivot could lead to a strong reversal on the upside.
Also Read: Bitcoin (BTC) Can Underperform Stocks And Bonds for Another Three Months, Here’s Why
- Trump Advisor Hints US Government Shutdown Could End This Week, Opening Door for XRP ETF Ruling
- Ethereum’s Vitalik Buterin Responds to Allegations of Excessive Control By ETH Inner Circle
- Solana News: Gemini Launches SOL Edition Credit Card Following XRP Card Success
- Bitget US Stock Futures Trading Volume Surpasses $200 Million
- Binance Founder CZ Predicts Bitcoin Will Flip Gold’s $30 Trillion Market
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
