Record-breaking outflow streak from Bitcoin ETFs: what's behind six weeks of negative flows
U.S. spot Bitcoin ETFs have completed their sixth consecutive week of negative performance. As of June 18, net capital outflows amounted to $90.66 million. This continues an alarming trend that began in mid-May.
Over the past month and a half, a total of $5.94 billion has been withdrawn from the funds. This figure has become an absolute anti-record since the launch of these instruments, clearly indicating a fundamental shift in market participant sentiment.
Reasons for Outflows: From AI to Arbitrage Closure
BTSE Chief Operating Officer Jeff May links the situation to capital flowing into stocks of companies involved in artificial intelligence. In his assessment, market attention has shifted to this sector in anticipation of major IPOs, particularly from OpenAI. However, this is only one side of the coin.
CoinEx analyst Jeff Ko notes that a significant portion of the outflows is caused by the closure of arbitrage trades, rather than a decline in demand for Bitcoin itself. Long-term investors, including pension funds, are maintaining their positions, indicating structural market resilience.
Slowing Pace of Withdrawals
Despite the prolonged series, the pace of withdrawals is noticeably slowing. While weekly outflows exceeded $1.7 billion in early June, they had decreased to $226 million by mid-month. This may suggest that the wave of selling is nearing its end.
The price of Bitcoin has stabilized around $64,000. However, macroeconomic factors continue to pressure the market—particularly the "hawkish" stance of new Federal Reserve Chairman Kevin Warsh, who has confirmed the intention to reduce inflation to 2%. According to analysts, cryptocurrency prices will remain in a sideways trend until the regulator's policy softens or clear positive drivers emerge in the industry.
New Product from BlackRock
In June, BlackRock launched the iShares Bitcoin Premium Income ETF on the Nasdaq, which combines exposure to the spot price of Bitcoin with active selling of covered call options. This signals that even amid outflows, institutional players continue to seek new ways to integrate digital assets into traditional portfolios.
My comment: The six-week series of outflows is not a panic flight, but rather a correction after overheating. Arbitrage strategies and the flow into the AI sector are temporary. Once the macroeconomic situation becomes clearer, we will see a return of capital to Bitcoin ETFs, especially given the launch of new structured products from giants like BlackRock.