What Comes Next as Crypto Investors Withdraw 152 Million from Bitcoin ETFs in 24 Hours
Key Points
– US Bitcoin spot ETFs experienced an outflow of $152 million on June 18, marking the fourth consecutive day of outflows.
– Fidelity’s FBTC led the outflows with $83 million, followed by Grayscale’s GBTC with $62.34 million.
– Bitcoin analyst Willy Woo predicts that Bitcoin needs more liquidations before bullish momentum returns.
Recent data from Wu Blockchain, a leading blockchain analytics firm, has revealed a significant movement of funds away from US Bitcoin spot ETFs. On June 18, a staggering $152 million was withdrawn, with particular attention on Fidelity’s FBTC and Grayscale’s GBTC as the major ETFs experiencing outflows. This marks the fourth consecutive day of substantial withdrawals from these crypto investment products.
The outflows from US Bitcoin spot ETFs have raised questions about the reasons behind this shift in investor sentiment. According to Wu Blockchain’s latest data, Fidelity’s FBTC led the retreat with a single-day outflow of $83 million, followed closely by Grayscale’s GBTC with a net outflow of $62.3397 million on June 18.
Historical data also shows that GBTC has witnessed total outflows amounting to $18.273 billion, underscoring a sustained trend of divestment from the Grayscale Bitcoin Trust. Despite these withdrawals, the collective net asset value of Bitcoin spot ETFs remains substantial at $56.056 billion.
The impact of these outflows on the crypto market is significant, especially as the price of bitcoin has fallen from $70,000 and currently hovers around $65,153. Bitcoin analyst Willy Woo has pointed out that the decrease in price is due to a reduction in mining activity, leading to fewer people trading Bitcoin.
Woo also highlighted the prevalence of paper bets on Bitcoin’s price as opposed to actual coins. He emphasized the need for more liquidations and increased trading activity for Bitcoin to regain bullish momentum and potentially reach new highs. Until these conditions are met, the outlook for substantial price increases remains cautious.
The outflows from US Bitcoin spot ETFs raise the question of whether this is a buying opportunity or a sign to stay away. Your thoughts on this matter are welcomed!