Wall Street Sells Bitcoin as ETFs Experience Four Consecutive Days of Outflows Indicating a Bearish Market Sentiment
Bitcoin (BTC) has recently undergone a significant downturn, dropping from $72,000 to $65,000 over the past 12 days, marking a 10% loss. This downturn has shaken confidence among Wall Street investors in the cryptocurrency, particularly impacting Bitcoin spot ETFs, which have seen four consecutive days of selling activity.
In the last four days alone, these ETFs have experienced an outflow of 10,630 BTC, totaling over $700 million across 10 different funds, according to data retrieved by Finbold from CoinGlass on June 19. This data sheds light on Wall Street’s sentiment towards Bitcoin exposure.
Leading this selling activity is Fidelity’s FBTC, responsible for over 50% of the daily outflows. Fidelity removed 5,390 BTC from its exchange-traded fund, while other funds experienced moderate or no outflows during this period.
Grayscale’s GBTC followed as the second largest ETF with outflows, selling 2,665 BTC since June 13, trailed by Ark’s ARKB with 2,254 BTC sold. Interestingly, BlackRock’s IBIT saw two days of inflows but has been inactive in the most recent days.
The collective market cap of Bitcoin spot ETFs on Wall Street amounts to $58.58 billion, managing $52.64 billion in assets under management (AUM), and achieving a daily trading volume of $1.87 billion. IBIT leads with a market capitalization of $19.65 billion and AUM of $17.24 billion, closely followed by GBTC with a market cap of $18.04 billion and higher AUM of $18.05 billion.
In terms of Bitcoin holdings, iShares from BlackRock currently holds the largest share with 305,590 BTC, followed by Grayscale with 280,320 BTC, and Fidelity as the third-largest holder with 170,150 BTC. Other funds maintain holdings below 50,000 BTC.
Bitcoin itself is currently trading at $65,485, struggling to maintain support above key levels. Failure to reclaim the $66,000 zone could push BTC down towards psychological support at $60,000, potentially leading to further losses.
Technical analysis indicates that Bitcoin has fallen below its 30-day exponential moving average, indicating weakness and a lack of upward momentum. This comes after multiple failed attempts to break the $72,000 resistance over the past few months.
These technical trends align with the outflow observed in Wall Street Bitcoin derivatives, which are lagging indicators influenced by ETF trading activities. ETF traders trade shares of funds without directly impacting the spot market, where issuers later settle by buying or selling actual Bitcoin.
Interestingly, BlackRock has been settling its BTC transactions through Coinbase rather than using Bitcoin’s own settlement network, citing transaction speed and cost-effectiveness for their $18.5 billion fund transactions.
Despite these insights from traditional finance giants, investors are cautioned about the speculative nature and inherent risks of cryptocurrencies like Bitcoin. Alternatively, they can explore projects focused on utility, driven by organic demand and adoption globally, for potentially more stable investments.
