Sixth week of outflows: investors pull billions from Bitcoin ETFs
U.S. spot Bitcoin ETFs continue to show negative dynamics: the sixth consecutive week ended with net capital outflows. As of June 18, total daily outflows amounted to $90.66 million, and over the past month and a half, $5.94 billion has been withdrawn from the funds. This is the longest streak of negative flows since the launch of these instruments on the market.
BTSE exchange Chief Operating Officer Jeff May links this to capital flowing into stocks of companies related to artificial intelligence. In his view, investor attention has shifted to this sector in anticipation of major IPOs, such as a potential initial public offering by OpenAI. Indeed, amid high volatility and macroeconomic uncertainty, the market is seeking new growth points, and the AI sector currently appears more attractive for short-term speculation.
However, there are also encouraging signals. The pace of withdrawals is clearly slowing: while weekly outflows exceeded $1.7 billion at the beginning of June, they had dropped to $226 million by mid-month. CoinEx analyst Jeff Ko notes that the wave of selling is nearing its end. A significant portion of the outflows is related to 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 the fundamental resilience of the asset.
The price of Bitcoin has stabilized around $64,000. The market continues to be pressured by macroeconomic factors, particularly the "hawkish" stance of new Fed Chairman Kevin Warsh, who has confirmed the intention to reduce inflation to 2%. This creates additional pressure on risky assets, including cryptocurrencies. According to analysts, prices will remain in a sideways trend until the regulator's policy softens or clear positive drivers emerge in the industry.
Notably, in June, BlackRock listed the iShares Bitcoin Premium Income ETF on Nasdaq, which combines exposure to the spot price of Bitcoin with active selling of covered call options. This could attract institutional investors seeking returns in a low-volatility environment.
My analysis: We are currently witnessing a classic correction following a period of euphoria. ETF outflows are not a panic flight but rather a portfolio rebalancing. Once the macroeconomic backdrop stabilizes and regulatory risks decrease, Bitcoin will again become attractive to major players. The current situation is an excellent opportunity for long-term accumulation.