Bitcoin ETFs have been experiencing notable activity, with significant inflows and outflows shaping the market. The first week of June saw U.S. Bitcoin ETFs acquiring a substantial amount of Bitcoin, while recent days have witnessed a reversal with net outflows ending a 19-day streak of inflows.

Key Takeaways

  • U.S. Bitcoin ETFs acquired nearly two months’ worth of Bitcoin mining supply in the first week of June.
  • A record 19-day inflow streak ended with $65 million in net outflows.
  • Bitcoin prices remain volatile, influenced by macroeconomic factors and geopolitical events.

Bitcoin ETFs Suck Up Mining Supply

In the first full trading week of June, U.S. Bitcoin ETFs acquired almost as much Bitcoin as they did in the entire month of May. The 11 ETFs bought 25,729 Bitcoin (BTC) between June 3 and 7, significantly more than the 3,150 new BTC mined over the same period. This influx amounted to approximately $1.83 billion.

The amount of Bitcoin acquired in that week alone was nearly as much as the entire month of May, making it the biggest week of buying since mid-March. The 11 ETFs have seen $15.69 billion in net inflows since their January launch, with total assets under management (AUM) of around $61 billion.

Record Inflow Streak Ends

However, the momentum did not last. On June 10, U.S. spot Bitcoin ETFs saw a daily net outflow of $64.93 million, ending their longest streak of inflows. Grayscale’s GBTC led the outflows with $40 million, followed by Invesco and Galaxy Digital’s BTCO with $20 million. Fidelity’s FBTC also recorded outflows for the first time since May 2.

Despite these outflows, BlackRock’s IBIT and Bitwise’s BITB recorded net inflows of $6 million and $8 million, respectively. The 19-day inflow streak had accumulated over $4 billion in net inflows, bringing the total net inflow since January to $15.62 billion.

Market Reactions and Price Volatility

Bitcoin’s price dipped last Friday after U.S. non-farm payroll data and unemployment data gave conflicting outlooks on the U.S. economy. This uncertainty led investors to move out from more risky assets. Bitcoin is currently trading at around $68,311.

The market is also anticipating the release of the U.S. Consumer Price Index (CPI) and the Federal Open Market Committee meeting. The CME Group forecasts a high probability that the Fed will maintain the current interest rate, while a Reuters poll suggests potential rate cuts later this year.

Broader Market Trends

Crypto investment products recorded inflows of $2 billion last week, marking the fifth consecutive week of positive inflows. This performance brought the five-week series to a total of $4.3 billion. The U.S. market accounted for $1.98 billion of last week’s net inflows.

BlackRock’s spot Bitcoin ETF reported nearly $1 billion in inflows last week, surpassing 300,000 BTC in assets under management. This fund now has over $21 billion in assets, exceeding the assets under management of Grayscale’s GBTC-converted fund from the previous week.

Future Outlook

Market watchers are keeping a close eye on the upcoming CPI data and Federal Reserve Chair Jerome Powell’s remarks for cues on when the central bank could move towards cutting interest rates. Hotter-than-expected inflation data in the past has led to a decline in Bitcoin prices, creating uncertainty about future rate cuts.

Meanwhile, U.S. ETF issuers are still awaiting feedback from the Securities and Exchange Commission on their S-1 registration statements. When launched, spot ether ETFs may capture a significant portion of the current flows directed towards spot Bitcoin ETFs.


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