Bitcoin ETFs Turn Negative Again, Experiencing $13 Million in Outflows

NEW YORK – Bitcoin exchange-traded funds (ETFs) have faced renewed bearish pressure as the underlying asset, Bitcoin (BTC), underwent a sharp price correction. The 11 Bitcoin US cash ETFs recorded net daily capital outflows totaling $13.4 million on Tuesday, following data from Farside Investors.

Outflows After Recent Inflows

This downturn comes after five consecutive sessions of inflows, with the ETFs witnessing the largest net inflow in nearly a month on Monday, amounting to almost $130 million. Despite this, the ETFs have seen a total inflow of approximately $267 million through Tuesday, a significant decrease compared to the outflows of over $550 million observed the previous week.

Grayscale’s GBTC and Bitwise’s BITB were the primary contributors to Tuesday’s combined outflows, each experiencing withdrawals of $32.4 million and $6.8 million, respectively. Conversely, BlackRock’s IBIT led the session in terms of inflows with $14 million, followed by funds from Fidelity ($5.4 million), VanEck ($3.5 million), and Ark Invest ($2.5 million).

Lack of Gains Across Other ETFs

The absence of daily gains for other ETFs also contributed to the overall outflow. Notably, products from Invesco, Franklin Templeton, Valkyrie, WisdomTree, and Hashdex did not record any net capital inflows or outflows during Tuesday’s session. Since their debut in January, Bitcoin US cash ETFs have amassed inflows totaling $14.64 billion.

Bitcoin’s Price Reversal

The latest ETF outflows coincided with a notable price reversal for Bitcoin. After starting July on a bullish note and surpassing $63,000 per unit on Monday, Bitcoin failed to sustain its upward momentum and fell below the $60,000 mark. This decline triggered a wave of liquidations in the cryptocurrency market early Wednesday.

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Expert observers attribute this downturn to various factors, including recent statements by the Federal Reserve about a prolonged delay in cutting interest rates and the impending payment to Mt. Gox victims. Despite these challenges, some analysts remain optimistic, projecting new highs for Bitcoin in August, spurred by the official announcement of candidates for the upcoming US presidential elections.

At the time of writing, Bitcoin is trading around $60,200, down 2.8% over the past 24 hours, according to data from CoinMarketCap. Other major cryptocurrencies are also experiencing declines.

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