The US spot Bitcoin ETFs, including GBTC, started off June on a high note despite hints of waning hype. In the first week alone, these ETFs collectively purchased 25,729 BTC, showing a strong interest from investors. This marked a significant increase compared to the previous months, with data showing that in January, these ETFs acquired 33,456 BTC, followed by 116,561 BTC in February and 65,456 in March. However, April saw an outflow of 6,074 BTC, which was then recovered in May with the purchase of 25,729 BTC.
Since their launch in mid-January, these spot Bitcoin ETFs have attracted a total of almost $15.7 billion in net inflows from investors. This figure, however, also includes the $17.93 billion in net outflows experienced by Grayscale’s GBTC during the same period. With 11 ETFs collectively managing more than $61 billion in total assets under management (AUM), BlackRock and Fidelity lead the pack in the US market.
The US-based spot ETFs were on a remarkable streak of 19 consecutive days with only inflows, showcasing strong investor confidence in the cryptocurrency market. However, this streak came to an end exactly a month after it started, with Farside data showing that the ETFs had $64.9 million taken out on June 10. The biggest loser in this scenario was Grayscale’s GBTC, which saw nearly $40 million taken out, while IBIT and BITB saw minor inflows.
Interestingly, the outflows from the ETFs had an immediate impact on the price of Bitcoin. In just 12 hours, the asset’s price tumbled from just over $70,000 to under $68,000, resulting in $170 million in liquidations and dragging the entire market down with it. This rapid shift in prices underscores the influence that institutional investors and ETFs have on the cryptocurrency market.
The rise and fall of US spot Bitcoin ETFs demonstrate the volatile nature of the cryptocurrency market and how quickly investor sentiment can shift based on various factors. As the market continues to evolve, it will be essential for investors to stay informed and adapt to changing dynamics to navigate this increasingly complex landscape.