Bitcoin ETFs in US Experience $1.3 Billion Outflow Amid Price Drop
Summary:
Over the past two weeks, US Bitcoin ETFs have seen an outflow of $1.3 billion amid a drop in Bitcoin's price. The Bitcoin ETF sector experienced a cumulative outflow of $1.298 billion, led by Grayscale, which lost $517.3 million. However, BlackRock’s Bitcoin ETF recorded positive trends, logging an inflow of $43.1 million. These developments mirror the situation in April when net outflows surpassed $1.2 billion. Market analysts attribute the dip in part to repayments to Mt. Gox creditors, however, some expect Bitcoin's price to stabilize and potentially reach new highs in the next few months.
Bitcoin exchange-traded funds (ETFs) in the United States have witnessed a substantial withdrawal of $1.3 billion in the past couple of weeks, coinciding with a drop in Bitcoin's value. Statistics provided by Farside Investors suggest that Bitcoin ETFs suffered a cumulative loss of $1.298 billion in these weeks, with Grayscale leading the pack by witnessing an outflow of $517.3 million. An exception to this trend was BlackRock's Bitcoin ETF, which saw an inflow of $43.1 million. The previous week alone accounted for a loss of $900 million.
In the same duration, Bitcoin's price plummeted by 11.6%, dropping from $69,476 on June 10 to $61,359 at present, as per TradingView data. The recent wave of pullbacks within the Bitcoin ETFs sector bears similarity to the situation in April, which saw net outflows surpassing $1.2 billion.
Jonathan de Wet, ZeroCap's Chief Investment Officer, shared with Cointelegraph, that despite the continuous drain in the broader crypto market, Bitcoin could possibly dip to its 'key support' level approximated around $57,000, influenced by repayments to Mt. Gox creditors. de Wet emphasised that the markets for Bitcoin and Ethereum have remained resilient in comparison to the broader market, and their prices are still well within the last few months' range.
Market observers are expressing fears about the potential negative impacts on the horizon. Factors like Bitcoin sales by the German government and nearly $9 billion in Bitcoin repayments expected from Mt. Gox creditors in July are believed to contribute to this downward pressure.
Despite predicting a potential downturn in the coming week due to repayments to Mt. Gox creditors, de Wet maintains a positive long-term outlook, informed by factors like the expected launch of Ethereum ETFs in late 2024.
Meanwhile, other analysts suggest that the impact of Mt. Gox creditor repayments may turn out less severe than expected. Farhan Badami, a market analyst for eToro, said Bitcoin is known for factoring in major market events and as such, he expects Bitcoin prices to stabilise in the coming weeks, potentially reaching new highs in the next few months.
Published At
6/25/2024 9:11:37 AM
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