Bitcoin ETFs recorded outflows of USD $174 million amid price decline – DiarioBitcoin
By Hannah Perez
The streak of outflows in spot Bitcoin ETFs persists and a wave of liquidations of more than $180 million hits the cryptocurrency market amid a bearish correction.
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- US Bitcoin Spot ETFs Recorded Seventh Straight Session of Outflows
- The outflows coincided with a Bitcoin price drop below USD $60,000
- Mt. Gox announcement and German government moves spark bearish sentiment
Exchange-traded funds (ETFs) Bitcoin Spot trading in the United States marked its seventh consecutive session of net capital outflows on Monday as the cryptocurrency’s price recorded a sharp bearish correction.
The 11 US ETFs with direct exposure to Bitcoin saw a joint withdrawal of USD $174.5 million on Monday, according to data compiled by Farside Investors. Flows to the funds turned negative on June 10, following a streak of unprecedented daily capital inflows. Since then, ETFs have only had one day of inflows.
GBTC, the ETF converted from Grayscalewas the biggest loser of the day, with a daily net outflow of USD $90.4 million followed by FBTC of Fidelitywith a negative flow of USD $35.2 million.
The ETFs of Bitcoin managed by Bitwise, Ark, Invesco, Franklin Templeton and VanEck, also recorded outflows on Monday of between USD $3 million and USD $21 million, while none recorded net capital inflows. IBIT, the ETF of BlackRockremained neutral along with the products of ValkyrieBRRR, HashdexDEFI, and WisdomTreeBTCW.
The group has so far amassed a combined net income of US$14.3 billion since their debut in January.
Recent outflows for ETFs Bitcoin spot prices in the US came at a time when the asset underlying that product class hit its lowest point in almost six weeks.
Bitcoin sank below USD $60,000
Bitcoin It hit a price low around USD $58,800 on Monday. While the cryptocurrency has since recovered, hovering around the $61,000 mark at press time, it is still posting losses of more than 6% on the week, according to data from CoinMarketCap.
The bearish correction coincided with the news of the distribution of payments of Mt. Gox, a defunct cryptocurrency exchange platform that declared bankruptcy in 2014 after suffering an exploit. Victims have been waiting a decade to recover their lost funds, and will finally see a long-awaited closure of the chapter.
Mt. Gox announced on Monday that it plans to distribute 9 billion dollars in payments of Bitcoin and Bitcoin Cash (BCH) to creditors starting in July, which was apparently taken as a bearish announcement by traders.
It also coincided with a huge movement of bitcoins by the German government, which sent 400 bitcoins to the exchanges Kraken and Coinbase early Tuesday, possibly with the intention of selling the coins.
The price drop, which spread across the rest of the cryptocurrency market, sparked a wave of liquidations worth more than $180 million, according to data from Coinglass corresponding to the last 24 hours. Most liquidations were from long positions, or higher price bets.
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of Unsplash
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