In the first week of June, US spot Bitcoin ETFs, including GBTC, showed a strong start by collectively purchasing 25,729 BTC. This was a significant increase compared to the previous month’s figures, with January seeing 33,456 BTC acquired, followed by 116,561 BTC in February, 65,456 BTC in March, and a small outflow of 6,074 BTC in April. May saw a recovery with 25,729 BTC purchased by these investment vehicles.
Data shared by HODL15Capital revealed that the amount of BTC bought by these ETFs in the first week of June was nearly the same as the entire month of May. Since their launch in mid-January, these spot Bitcoin ETFs have attracted almost $15.7 billion in net inflows from investors. This total also includes the $17.93 billion in net outflows experienced by Grayscale’s GBTC during the same period.
Collectively managing over $61 billion in total assets under management (AUM), these 11 ETFs are led by BlackRock and Fidelity in the US. Despite a strong streak of 19 consecutive days with only inflows, the ETFs experienced a setback with $64.9 million taken out on June 10. Grayscale’s GBTC was the biggest loser, with nearly $40 million withdrawn, while IBIT and BITB were among the few that saw minor inflows.
The outflows from the ETFs coincided with a sudden drop in Bitcoin’s price, which went from just over $70,000 to under $68,000 in a matter of hours. This led to $170 million in liquidations and had a ripple effect on the entire market. It is interesting to note how closely the movements of these ETFs are correlated with the price fluctuations of Bitcoin and the wider cryptocurrency market.
Overall, despite some fluctuations and outflows, US spot Bitcoin ETFs have continued to attract significant investor interest and inflows. The strong start to June and the high levels of AUM managed by these ETFs indicate a growing confidence in Bitcoin as an investment asset. However, the correlation between ETF outflows and price drops in Bitcoin highlights the volatility and interconnected nature of the cryptocurrency market, which investors need to be mindful of. As the market continues to evolve, it will be interesting to see how these ETFs adapt and attract new investors while navigating the ever-changing landscape of digital assets.
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