Bitcoin exchange-traded funds (ETFs) in the United States have experienced significant outflows amounting to $1.3 billion over the past two weeks, coinciding with a decline in the price of Bitcoin.
Data from Farside Investors reveals that Bitcoin ETFs saw a total outflow of $1.298 billion during the last two trading weeks, with Grayscale leading the outflows at $517.3 million.
Interestingly, BlackRock’s Bitcoin ETF was the only fund to record positive results, attracting inflows worth $43.1 million over the same period.
Within the same timeframe, the price of Bitcoin (BTC) dropped by 11.6%, falling from $69,476 on June 10 to $61,359 at the time of this publication, according to TradingView data.
This recent wave of outflows from Bitcoin ETFs marks the worst performance since April, when these investment vehicles experienced net outflows exceeding $1.2 billion between April 24 and the beginning of May.
Jonathan de Wet, the chief investment officer at digital asset trading firm ZeroCap, has predicted a further decline in the price of Bitcoin to its “key support” level of around $57,000 in the coming weeks due to Mt. Gox creditor repayments. Nevertheless, he believes that Bitcoin and Ethereum are holding up relatively well compared to the rest of the market.
Market commentators have expressed concerns about significant downward pressure in the market, partly due to Bitcoin sales by the German government and the anticipation of nearly $9 billion in BTC Mt. Gox creditor repayments in July.
However, de Wet maintains a bullish long-term outlook, despite the expected sell pressure from Mt. Gox creditor repayments. On the other hand, some analysts suggest that the impact of these repayments may not be as severe as initially anticipated.
Farhan Badami, a market analyst at eToro, considers Bitcoin to be “forward-looking” and believes that it often incorporates significant market events into its price. Badami expects the price of Bitcoin to stabilize in the coming weeks and eventually rally to new all-time highs in the next few months.
In summary, the outflows from United States Bitcoin ETFs have reached $1.3 billion over the last two weeks, coinciding with a decline in the price of Bitcoin. However, there are differing opinions regarding the future trajectory of Bitcoin, with some predicting further decline and others anticipating a stabilization and eventual rally in price.