On June 10, Bitcoin investment funds in the United States experienced a substantial net outflow, halting a 19-day streak of continuous inflows. The 11 spot Bitcoin ETFs collectively saw a net outflow of $64.93 million. Grayscale’s GBTC fund was the hardest hit, registering a $40 million outflow over the week. Invesco and Galaxy Digital’s BTCO also faced net outflows amounting to $20 million, with other funds witnessing investor redemptions.
What’s Impacting ETF Movements?
Valkyrie’s Bitcoin ETF reported a $16 million net outflow, while Fidelity’s FBTC fund experienced its first negative flow since May 2, with a $3 million outflow. Conversely, BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, recorded a net inflow of $6 million. Bitwise’s BITB fund saw a positive inflow of $8 million. The previous inflow streak, which ended on May 7, saw over $4 billion in net inflows, contributing to a total of $15.62 billion since January.
According to trading firm QCP Capital, Bitcoin’s price dipped on May 7 following conflicting US economic data, causing investors to withdraw from riskier assets amid uncertainty.
Why are Markets Watching Closely?
Markets are now eagerly anticipating the release of the US Consumer Price Index (CPI) and the Federal Open Market Committee meeting later this week. The CME Group indicates a 99.4% likelihood that the Federal Reserve will maintain current interest rates between 5.25% and 5.50%. Meanwhile, a Reuters survey of economists predicts that the Fed could initiate rate cuts twice starting in September.
Key Insights
- On June 10, 11 spot Bitcoin funds recorded a net outflow of $64.93 million.
- Grayscale’s GBTC led the outflows with $40 million.
- Investors are closely monitoring the upcoming US CPI release and Federal Reserve meeting.
US ETF issuers are also awaiting feedback from the Securities and Exchange Commission (SEC) on their S-1 registration statements submitted last month. Approval from the SEC is essential for launching spot Ethereum funds.