Bitcoin ETF Investors Wait Amid Fear of Billion-Dollar BTC Dump

YEREVAN ( — Bitcoin ETF investors are pulling back amid fears of a billion-dollar Bitcoin (BTC) dump. Data from mid to late June 2024 shows significant outflows from various Bitcoin exchange-traded funds (ETFs).

Significant Bitcoin ETF Outflows Highlight Investor Concerns in Late June 2024

The Bitcoin ETF Flow table from June 17 to July 2, 2024, reveals troubling trends. On June 17, total outflows reached $145.9 million, with FBTC experiencing a substantial $92.0 million withdrawal and ARKB seeing $50.0 million pulled out. The next day, June 18, saw total outflows climb to $152.4 million, driven by FBTC’s $83.1 million exit and GBTC’s $62.3 million withdrawal.

From June 19 to June 24, the pattern continued. On June 24, outflows peaked at $174.5 million. Significant withdrawals included $35.2 million from FBTC, $8.2 million from BITB, and $90.4 million from BTCW.

Bitcoin ETF Flow Breakdown (Source: Farside Investors
Bitcoin ETF Flow Breakdown. Source: Farside Investors

Late June Bitcoin ETF Inflows Followed by Renewed Outflows in Early July 2024

Towards the end of June, there was a brief period of inflows. On June 25, total inflows were $31.0 million, led by $48.8 million into FBTC and $15.2 million into ARKB. June 26 and June 27 also saw positive movements with inflows of $21.4 million and $11.8 million, respectively.

By June 28, there were $73.0 million in inflows, offset by a $27.2 million outflow from GBTC. On July 2, the market saw renewed outflows totaling $13.7 million, primarily from BITB ($6.8 million) and BTCW ($32.4 million).

Market Shows Growth, Fluctuations, and Stabilization in First Half of 2024

Market speculation about a potential billion-dollar BTC dump is influencing investor behavior.

From January to March 2024, there was robust growth, reflecting strong investor interest. Blackrock and Grayscale emerged as dominant players, attracting substantial investments. Providers like Fidelity, Ark, and VanEck also contributed to this upward trend.

In April, there were noticeable fluctuations in cumulative flows. These ups and downs likely correspond to market volatility and economic events impacting investor confidence. Despite the fluctuations, the overall trend remained positive.

By June 2024, growth in cumulative flows began to plateau. This suggests that while interest in Bitcoin ETFs remains, the market has entered a period of stabilization.

Bitcoin Spot ETF Cumulative Flow Analysis (Source: Farside Investors)
Bitcoin Spot ETF Cumulative Flow Analysis. Source: Farside Investors

US Spot Bitcoin ETFs See $20.45M Net Outflow on July 3rd Amid Lower Trading Volume

The US spot Bitcoin ETFs experienced a net outflow of $20.45 million on July 3rd. Grayscale’s GBTC saw a $26.99 million exit, while Fidelity’s FBTC gained $6.55 million. The remaining funds, including BlackRock’s IBIT, reported no flows. Trading volume for these 11 funds reached around $800 million on July 3rd, down from $995 million the previous day.

Bitcoin Spot ETF Net Inflow Trends (Source: SoSoValue
Bitcoin Spot ETF Net Inflow Trends. Source: SoSoValue

July Starts Strong with $129M Inflows, Followed by Market Concerns and Whale Sales

The first day of July saw a positive influx of $129 million, aligning with historical patterns where Bitcoin often starts the month on an upward trend.

Bitcoin Spot ETFs Surge with $129 Million Inflow (Source: Wu Blockchain
Bitcoin Spot ETFs Surge with $129 Million Inflow. Source: Wu Blockchain

However, subsequent flows have been lackluster. The recent price decline occurred after Germany’s government moved another batch of confiscated Bitcoin tokens. About 1,300 BTC, worth close to $76 million, was sent to major exchanges like Kraken, Bitstamp, and Coinbase.

Adding to the concerns, whales are selling again. On July 4th, Spotonchain observed a transfer of 1,700 BTC valued at over $99 million to Binance.

The impending Mt. Gox repayments, expected to distribute over $9.4 billion worth of Bitcoin to 127,000 creditors, could add additional selling pressure.

BTC Price Drop Amid Key Events

Bitcoin’s price has dropped 23.17% over the past month, now standing at $54,474.04. Key events influencing this decline include:

  1. German Government Moves Bitcoin:
  2. Mt. Gox Repayments:

The 24-hour trading volume reached $50,053,379,510, and the market cap decreased by 5.63% to $1,074,199,783,985.

Bitcoin Price Decline Influenced by Key Events (Source: CoinMarketCap
Bitcoin Price Decline Influenced by Key Events. Source: CoinMarketCap

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