Bitcoin ETF Outflows Continue as Market Woes Deepen

The end of the week brought more outflows from spot Bitcoin exchange-traded funds (ETFs), with total net outflows exceeding $544 million. According to Farside Investors, spot Bitcoin ETFs saw net outflows of $105.9 million on June 21, marking the sixth consecutive day with outflows surpassing $100 million.

The majority of these outflows came from three major funds: the Fidelity Wise Origin Bitcoin Fund (FBTC) with $44.8 million, the Grayscale Bitcoin Trust (GBTC) with $34.2 million, and the ARK 21Shares Bitcoin ETF (ARKB) with $28.8 million exiting.

Despite the bearish sentiment in the market, not all ETFs followed this trend. The Franklin Bitcoin ETF (EZBC) managed to buck the trend with an inflow of $1.9 million on the same day. BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF by holdings, remained neutral with no significant changes.

The recent trend of outflows is significant, especially considering that spot Bitcoin ETFs experienced $580.6 million in net outflows just last week. This comes after four consecutive weeks of net inflows, which added around $4 billion to these investment products.

In the broader cryptocurrency market, fear, uncertainty, and doubt (FUD) have been prevalent, reflected in Bitcoin’s price dropping below $64,500. On-chain data has shown significant activity among Bitcoin whales, with whales selling approximately $1.2 billion worth of BTC over the past two weeks. This selling coincided with the negative net flows in spot BTC ETFs.

CryptoQuant CEO Ki Young Ju warned that if this sell-side liquidity is not absorbed over the counter, it could lead to more BTC being deposited on exchanges, potentially impacting the market further. Despite a slight rebound in Bitcoin’s price, the coin has experienced a 7.2% decline over the past 14 days, highlighting the ongoing volatility in the market.