Spot Bitcoin ETFs Experience Sudden Outflows

June 10 marked a significant shift in the investment landscape for U.S. spot Bitcoin ETFs, which recorded net outflows of $65 million, ending a 19-day streak of consistent inflows. According to data from Farside Investors, this reversal is notable as the last instance of net outflows occurred nearly a month prior, on May 10, with $84.7 million being withdrawn.

Among the affected funds, Grayscale’s GBTC ETF experienced substantial net outflows of almost $40 million on June 10. This withdrawal is part of a larger trend for the fund, which has seen more than $113 million leave over three consecutive days.

Similarly, BlackRock’s IBIT ETF witnessed a sharp decrease in its inflows, plummeting to just $6.3 million from a robust $168.3 million just three days earlier. This sudden drop underscores the volatile nature of market sentiment towards these investment vehicles.

Other funds like Invesco and Galaxy Digital’s BTCO ETF and Valkyrie Digital Assets’ BRRR ETF also reported significant outflows, totaling $20.5 million and $15.8 million, respectively, on the same day.

This trend of outflows contrasts starkly with the strong inflows recorded last week, where IBIT and Fidelity’s FBTC ETF collectively attracted over $1.6 billion. This surge positioned them among the top 10 ETFs in terms of inflows across all categories, as reported by etf.com.

The timing of these outflows coincides with a downturn in Bitcoin’s market price, which fell by over 3% in anticipation of the upcoming Federal Open Market Committee (FOMC) meeting and Consumer Price Index (CPI) report. In the past 24 hours, Bitcoin has dropped to as low as $66,791, though it has managed a slight recovery to just under $67,000, per CoinGecko.

The cryptocurrency market’s volatility was further highlighted by significant liquidations in Bitcoin derivatives, where over $50 million was liquidated in the past day, with long positions comprising $44.34 million of this total, according to Coinglass data.

The recent outflows from U.S. spot Bitcoin ETFs and the accompanying drop in Bitcoin’s price reflect the market’s sensitivity to macroeconomic indicators and the high stakes involved in cryptocurrency investment during uncertain economic times. This scenario presents a crucial moment for investors to reassess their positions and strategies in anticipation of further market developments.