Winning streak for bitcoin ETFs broken

Spot bitcoin (BTC) ETFs in the United States experienced a net capital outflow of $580 million last week, ending their 4-week winning streak of positive money flows.

The Grayscale Bitcoin Trust (GBTC) fund managed by the company Grayscale led the exits with $274 million, followed by ARK 21Shares Bitcoin ETF (ARKB) and Fidelity Wise Origin Bitcoin Fund (FBTC) which recorded $149 million and $146 million in net outflows, respectively. This can be seen in the following SosoValue graph.

In contrast, iShares Bitcoin Trust (IBIT) managed by BlackRock was the only fund that generated net inflows, attracting $41 million. The rest of the funds did not register inflows or outflows during the past week.

This negative record came after ETFs experienced net inflows for 19 consecutive days between May 13 and June 7. If the outflows continue, it will be bearish for the price of bitcoin due to the operation of spot ETFs, which are backed by the underlying asset.

Since the funds’ operations began in January, Total net inflows to ETFs now reach $15.1 billion.

Although the United States was the main contributor to departures with a total of 565 million dollars, The negative sentiment was not limited to this country. Canada, Switzerland and Sweden also recorded outflows of $15 million, $24 million and $15 million respectively.

Globally, digital asset investment products saw a net outflow of $600 million last week, according to the latest report from CoinShares.

Macroeconomics helps lower bitcoin price

This drop in ETFs came after a meeting of the Federal Open Market Committee (FOMC) last week. According to CoinShares analyst James Butterfill, this meeting was “more aggressive than expected,” leading investors to reduce their exposure to financial instruments based on bitcoin and cryptocurrencies.

The uncertainty in the United States macroeconomy is due to the fact that the FOMC anticipated a single interest rate cut for 2024, below the projection of three reductions mentioned months before and the two expected by the market.

These movements had consequences for the price of bitcoin, which today fell to $65,000, registering a drop in price of 7% in the last weekas reflected in the following TradingView chart.

Although ETFs are an important part of the market, for market analyst Willy Woo, what really matters is total supply and demand, CriptoNoticias reported.

According to their research, those who are selling are the OGs (original gangsters), early adopters of bitcoin, who hold ten times more bitcoin than ETFs and sell in every bull market.