Spotonchain’s recent analytics have brought to light a concerning trend for Bitcoin ETFs, with a continued negative net inflow that has persisted for a record seven days. This marks the longest such streak observed since May of this year and indicates a broader hesitation in market sentiment, possibly influenced by external economic pressures and investor skepticism regarding interest rates and economic policies.
According to Spotonchain, the lowest level of net inflow was recorded for Bitcoin ETFs on June 24, 2024, collapsing by a massive $175 million exiting these funds. None of the Bitcoin ETFs saw inflows on the day, highlighting how wide-ranging the pullback is across these products.
Grayscale’s Bitcoin Trust (GBTC) saw the largest outflow, while BlackRock’s IBIT managed to maintain a non-negative net flow amidst this turmoil, presenting a silver lining in an otherwise gloomy scenario.
Coinshares’ recent insights align with Spotonchain’s findings, revealing that digital asset investment products have experienced two consecutive weeks of outflows, totaling a staggering $584 million. This downturn has wiped nearly $1.2 billion off the market value, driven largely by a lack of optimism among investors concerning anticipated interest rate cuts by the Federal Reserve this year.
Despite the prevailing negative sentiment, multi-asset products witnessed inflows of $98 million, suggesting that some investors see the current weakness in the altcoin market as an opportunity for acquisition.
Despite the turbulent market conditions and the massive outflows from Bitcoin ETFs, the price of Bitcoin has shown remarkable resilience. After a drop to $58,000, the cryptocurrency has managed to climb back above the $60,000 mark, reaching a high of $62,949 over the past 24 hours before correcting to $60,672.
This slight recovery indicates that while investor sentiment is shaky, the fundamental interest in Bitcoin remains robust, suggesting a potential stabilization or even a recovery if broader market conditions improve.