The Rise and Fall of US Spot Bitcoin ETFs in June

The Rise and Fall of US Spot Bitcoin ETFs in June

The US spot Bitcoin ETFs, including GBTC, made a strong start to June despite hints of waning hype. In the first week alone, these ETFs collectively purchased 25,729 BTC. This was a significant increase compared to previous months.

Data shows that in January, these ETFs acquired 33,456 BTC, followed by 116,561 BTC in February and 65,456 in March. However, April saw an outflow of 6,074 BTC, with a recovery in May when 25,729 BTC was recorded. The amount of bitcoins purchased in the first week of June almost matched the entire month of May.

Since their launch in mid-January, US spot Bitcoin ETFs have attracted almost $15.7 billion in net inflows from investors. This figure also includes the $17.93 billion in net outflows from Grayscale’s GBTC during the same period. Collectively, these 11 ETFs manage over $61 billion in total assets under management, with BlackRock and Fidelity leading the pack in the US.

The US-based spot ETFs enjoyed a streak of 19 consecutive days of only inflows, but this record was broken exactly a month after it started. Data from Farside revealed that $64.9 million was taken out on June 10. Notably, Grayscale’s GBTC was the biggest loser, experiencing nearly $40 million in outflows, while IBIT and BITB saw minor inflows.

Interestingly, the outflows from the ETFs had an immediate impact on Bitcoin’s price. In the past 12 hours, the asset’s value dropped from just over $70,000 to under $68,000, resulting in $170 million in liquidations. This sudden decline also dragged the entire cryptocurrency market down with it.

Overall, while US spot Bitcoin ETFs had a strong start to June with significant inflows, the subsequent outflows and their impact on Bitcoin’s price highlighted the volatility and interconnected nature of the cryptocurrency market. Investors and analysts will be closely monitoring these developments in the coming days to gauge the market’s response and potential future trends.

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