Bitcoin ETF Outflows Cause $1.329 Billion Exit from Stock Market
The formal stock market has seen a significant outflow of $1.329 billion since June 10, leading to an 11% drop in the price of cryptocurrency. This trend has particularly affected Bitcoin spot ETFs, which experienced their worst month in June, falling by 10%.
The Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs on January 10, allowing more investors to access this high-market-cap cryptocurrency in a less risky manner. These ETFs are offered by well-known companies such as Blackrock, Valkyrie, Grayscale, Bitwise, and others.
However, since June 10, the 11 U.S. ETFs have seen significant outflows totaling $1.329 billion, according to Farside Investors. Grayscale’s ETF, GBTC, recorded the largest loss with a daily outflow of $622.6 million, followed by Fidelity’s ETF (FBTC) with $503.1 million and ARK with $244.2 million.
The impact of these outflows is evident in the cryptocurrency market, with Bitcoin falling by 11.13% from June 10 to June 25, dropping from $69,647.99 to $61,895, even dipping below $60,000 at one point. Ethereum and Solana, the second and third-largest cryptocurrencies by market cap, also saw losses of 7.99% and 15.25% respectively over the past two weeks.
The ongoing outflows from the formal stock market and the subsequent drop in cryptocurrency prices have raised concerns among investors and analysts about the future of the market. It remains to be seen how these developments will impact the overall cryptocurrency landscape in the coming months.
