U.S. Spot Bitcoin ETFs Witness Significant Outflows Amid Bitcoin Price Slump

U.S. spot bitcoin exchange-traded funds (ETFs) recorded a substantial net outflow of $174.45 million on Monday, marking their seventh consecutive day of negative flows. Grayscale’s GBTC led the outflows with $90 million, followed by Fidelity’s FBTC, which saw $35 million worth of withdrawals, according to data from SosoValue.

Other major ETFs were not spared: Franklin Templeton’s EZBC experienced its first net outflow since May 2, losing $20.8 million. VanEck’s HODL saw $10 million in outflows, Bitwise’s BITB reported $8 million in withdrawals, while Ark Invest and 21Shares’ ARKB fund faced $7 million in outflows. Invesco and Galaxy Digital’s BTCO reported $2 million in outflows. In contrast, BlackRock’s IBIT, the largest spot bitcoin ETF by net asset value, recorded zero flows on Monday, as did funds from Valkyrie, WisdomTree, and Hashdex. Notably, no funds reported net inflows.

The outflows coincided with bitcoin reaching its lowest point in nearly six weeks, briefly dipping below the $60,000 mark on Monday. At the time of publication, bitcoin was trading at $61,191, down 2.36% over the past 24 hours. This price decline followed a significant announcement from Mt. Gox, the defunct cryptocurrency exchange that declared bankruptcy in 2014 after multiple hacks. Mt. Gox revealed plans to distribute $9 billion worth of bitcoin and bitcoin cash repayments to creditors starting in July.

Analysts told The Block that the Mt. Gox announcement created a “classic ‘sell the news’ scenario,” leading to investor concerns about an influx of supply likely to be liquidated upon receipt. This expectation has added to the downward pressure on bitcoin prices.

With bitcoin’s continuous decline and substantial outflows from major ETFs, the market sentiment remains bearish. The potential liquidation of large amounts of bitcoin from Mt. Gox creditors adds to the uncertainty, potentially exacerbating the selling pressure. Analysts suggest that if bitcoin’s price does not stabilize above key support levels, further declines could be imminent. Investors will be closely monitoring regulatory developments, institutional adoption trends, and macroeconomic factors that could influence bitcoin’s price trajectory. In the short term, the market may witness heightened volatility as participants react to ongoing developments and market dynamics.