Bitcoin ETF Outflows Surge as Market Reacts to Price Dip and FOMC Meeting

• The U.S. saw significant outflows in spot Bitcoin ETFs totaling $65 million on June 10th, ending a notable 19-day streak of net inflows.
• Data from Farside Investors reveals the previous event of net outflows for all U.S. spot Bitcoin ETFs occurred on May 10th, which amounted to $84.7 million.
• Grayscale’s GBTC ETF recorded net outflows of nearly $40 million on June 10th, accumulating a three-day outflow total surpassing $113 million.

A sudden shift in Bitcoin ETF inflows as market reacts to recent price dips and upcoming economic announcements from the Federal Reserve.

Significant Declines in Grayscale and BlackRock Bitcoin ETFs

On June 10th, Grayscale’s GBTC ETF encountered massive net outflows of about $40 million. Concurrently, BlackRock’s IBIT ETF saw a sharp downturn, with inflows plummeting to just $6.3 million, a significant drop from $168.3 million on June 7th. This dramatic change suggests investor caution amid current market volatility.

Comparative Analysis of ETF Performance

Both Invesco and Galaxy Digital’s BTCO ETF, and Valkyrie Digital Assets’ BRRR ETF, experienced outflows on June 10th amounting to $20.5 million and $15.8 million, respectively. This followed a recent trend where strong inflows were observed in BlackRock’s IBIT ETF and Fidelity’s FBTC, which together garnered over $1.6 billion the previous week, validating their ranking among the top 10 ETFs across all categories.

Impact on Bitcoin Prices and Derivatives

The outflows from Bitcoin ETFs were mirrored by Bitcoin’s price decline by over 3%, coinciding with anticipation of the Federal Open Market Committee (FOMC) meeting and Consumer Price Index (CPI) report. As the leading cryptocurrency, Bitcoin saw a drop by 3.6% in the past 24 hours to a low of $66,791 before slightly recovering to just under $67,000. This volatility affected the derivatives market, where liquidations surpassed $50 million, with $44.34 million of those being long positions, according to Coinglass.

Conclusion

Overall, the sudden and substantial outflows from key Bitcoin ETFs highlight a cautious market sentiment in the face of impending economic data releases. These movements underscore the volatility and sensitivity of the crypto markets to broader financial indicators, emphasizing the importance for investors to stay informed and agile.