Spot Bitcoin ETF Outflows Hit $813M Since June 10

Spot Bitcoin ETF Outflows Hit $813M Since June 10

Flows to the 11 products have fallen off as bitcoin's price has dropped amid profit taking.

ETF.com
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Contributing Editor
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Reviewed by: etf.com Staff
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Edited by: Ron Day

Spot bitcoin exchange traded funds have suffered outflows on six of the past seven trading days totaling a net $813 million, according to U.K.-based asset manager Farside Investors—part of a wider sell-off in digital asset investments.  

Starting June 10, the Grayscale Bitcoin Trust (GBTC) and the Fidelity Wise Origin Fund (FBTC) have seen $413 million and $372 million in outflows, respectively, the most of the 11 funds currently trading. The downturn comes as bitcoin has swooned below $65,000 for the first time since early May, according to crypto markets data provider CoinMarketCap.

Source: etf.com

In a note to etf.com, Joe DiPasquale, CEO of San Francisco-based crypto fund manager BitBull Capital, noted a "tug of war going on between bulls and bears in bitcoin."

"This week, we are watching sentiment analysis closely as crypto liquidations have become a common phenomenon," he wrote. "We chalk up much of the liquidations this week to be profit-taking as the price consolidates around $65K and sentiment remains cautious."

IBIT Flows Slow

ETF funds soared over the latter part of May and into early June, drawing in more than $3.3 billion in inflows over a month-long period. FBTC was a big part of that charge. 

On June 4, the fund generated $379 million in inflows on a day in which total inflows reached their second highest daily total since they began trading in early January. But since then, flows have sagged as bitcoin's price dropped, a result of the profit taking and publicly traded miners aiming to improve their balance sheets. 

Read More: Spot Bitcoin ETF Flows Jump, Hit 2nd Highest Daily Mark

Even flows to BlackRock's iShares Bitcoin Trust (IBIT) have slowed with the fund generating only about $40 million in inflows over the past seven days. IBIT has generated more than $17.6 billion in inflows over its five-month lifespan, the most of any of the funds. GBTC has the most assets under management, although it has bled assets on all but a few days, a reflection partly of its segment high fee. The fund is a conversion from a trust.

 

James Rubin is a contributing editor for etf.com, where he produces the Morning Exchange and Weekly Exchange newsletters. A longtime financial writer, editor and book author, he formerly held positions as a news and markets editor for the Americas at CoinDesk, where he focussed on cryptocurrencies. 

He provided editorial guidance for a Wall Street Journal best-selling book on Bitcoin and oversaw a startup newsroom focused on digital financial assets. He has edited for TheStreet and Unchained, where he wrote daily news stories about the trial of fallen crypto entrepreneur Sam Bankman-Fried. His writing has also appeared in The Hollywood Reporter, Forbes.com, AdWeek, Bankrate, The Financial Brand and The Wall Street Journal. He has also written for Forbes Insights and the Economist Intelligence Unit, including papers presented at World Economic Forums in Davos and Mumbai. 

James is the co-author of The Urban Cyclist’s Survival Guide (Triumph Books) and has been interviewed about bike safety on a number of NPR affiliates. In a prior career, Rubin was a world-ranked tennis player, once competing in Wimbledon’s qualifying rounds. He speaks fluent German and is a graduate of the Columbia University Graduate School of Journalism and received his BA at Columbia University.