A recent report by Wu Blockchain, a leading blockchain analytics firm, has revealed a significant shift in funds away from US Bitcoin spot ETFs. On June 18, a total of $152 million was withdrawn from these investment products, with a focus on Fidelity’s FBTC and Grayscale’s GBTC among the major ETFs experiencing outflows.
This marks the fourth consecutive day of substantial withdrawals from these crypto investment products. According to Wu Blockchain’s latest data, Fidelity’s FBTC saw the largest single-day outflow of $83 million among the 11 ETFs monitored.
Grayscale’s GBTC also experienced a significant net outflow of $62.3397 million on the same day. Historical data shows that GBTC has witnessed total outflows amounting to $18.273 billion, indicating a sustained trend of divestment from the Grayscale Bitcoin Trust.
Despite these withdrawals, the collective net asset value of Bitcoin spot ETFs remains substantial at $56.056 billion. The impact of these outflows on the crypto market is notable, especially as the price of bitcoin continues to decline from its peak of $70K to around $65,153.
Bitcoin analyst Willy Woo explained that the lack of a significant price jump may be attributed to fewer people trading Bitcoin, as some miners have stopped mining. Woo also highlighted the prevalence of paper bets on Bitcoin’s price, as indicated by a z-score oscillator chart.
Woo’s analysis suggests that for Bitcoin to regain bullish momentum and potentially reach new highs, more liquidations and increased trading activity are necessary. Until these conditions are met, the outlook for substantial price increases remains cautious.
In conclusion, the movement of funds away from US Bitcoin spot ETFs and the impact on the crypto market highlight the current sentiment and trends in the industry. Whether this presents a buying opportunity or a reason to stay away is a question for investors to consider.