The US spot Bitcoin ETFs, including GBTC, started June with a bang, collectively purchasing 25,729 BTC in the first week. This was a significant increase compared to the previous months, with data showing that in January, these ETFs acquired 33,456 BTC, followed by 116,561 BTC in February and 65,456 in March. However, April saw an outflow of 6,074 BTC, which was quickly recovered in May with 25,729 BTC. The most interesting data point is that the amount of bitcoins purchased in the first week of June almost matched the entire month of May, indicating a growing interest in these investment vehicles.
Net Inflows and Outflows
Since their launch in mid-January, the spot Bitcoin ETFs have attracted almost $15.7 billion in net inflows from investors. This is a significant amount, but it also includes the $17.93 billion in net outflows experienced by Grayscale’s GBTC during the same period. With a total of 11 ETFs managing over $61 billion in assets under management (AUM), BlackRock and Fidelity are leading the pack in the US. It’s worth noting that the US-based spot ETFs had a solid streak of 19 consecutive days with only inflows, but this record was broken when $64.9 million was taken out on June 10, with Grayscale’s GBTC being the biggest loser.
Market Impact
The outflows from the ETFs had an immediate impact on the price of Bitcoin, causing it to tumble in the past 12 hours. The asset dropped from over $70,000 to under $68,000, resulting in $170 million in liquidations and dragging the entire market down with it. The sudden shift in price highlights the interconnectedness of Bitcoin ETFs and the broader cryptocurrency market, indicating that they can have a significant influence on price movements.
While the US spot Bitcoin ETFs had a strong start to June and attracted substantial inflows from investors, the recent outflows and subsequent price drop demonstrate the volatility and influence that these investment vehicles can have on the cryptocurrency market. Investors should pay close attention to the movements of these ETFs as they navigate the ever-changing landscape of digital assets.
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