Spotonchain’s recent analysis has brought to light a concerning trend for Bitcoin ETFs, with a sustained negative net inflow for a record seven days. This marks the longest such streak since May of this year and reflects a broader hesitation in market sentiment, possibly influenced by external economic pressures and investor skepticism regarding the immediate future of interest rates and economic policies.
The data from June 24, 2024, revealed a significant collapse in net inflow for Bitcoin ETFs, with a massive $175 million exiting these funds. None of the Bitcoin ETFs saw inflows on that day, highlighting the widespread pullback across these products.
In particular, Grayscale’s Bitcoin Trust (GBTC) experienced the largest outflow, indicating a significant shift in investor behavior. However, BlackRock’s IBIT managed to maintain a non-negative net flow amidst this turmoil, offering a glimmer of hope in an otherwise gloomy scenario.
Coinshares’ recent insights align with Spotonchain’s findings, showing 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, largely driven by a lack of optimism among investors concerning anticipated interest rate cuts by the Federal Reserve this year.
Despite the prevailing negative sentiment, Bitcoin has shown remarkable resilience in price, clawing its way back above the $60,000 mark after a sharp drop to $58,000. While the cryptocurrency reached a high of $62,949 in the past 24 hours before correcting to $60,672, marking a 3.2% decrease, this slight recovery indicates a fundamental interest in Bitcoin that remains robust, suggesting a potential stabilization or recovery if broader market conditions improve.
