Bitcoin exchange-traded funds listed in the United States are poised to experience their most significant monthly withdrawal of funds since their introduction two years ago.
Data indicates that in June, investors have pulled over $4.1 billion from these 13 Bitcoin ETFs, setting a record for the largest monthly net outflow since these products began trading in January 2024. Notably, the largest spot Bitcoin ETF by assets under management, iShares Bitcoin Trust (IBIT) from BlackRock, accounted for $3 billion of these outflows on its own.
Concurrently, Bitcoin itself is heading towards its worst-performing month since June 2022, a period marked by a series of cryptocurrency firm bankruptcies that ultimately led to the collapse of Sam Bankman-Fried's crypto exchange, FTX. So far this month, Bitcoin has declined by more than 18%. After falling below the $60,000 threshold last week, its price has continued to hover around that level.
Analysts from market intelligence firm Glassnode noted in a recent report that the scale and duration of these outflows suggest traditional investors are maintaining a defensive posture. They added that in previous Bitcoin pullbacks, such dips often attracted capital inflows into ETFs as investors sought to buy on weakness; this time, however, investors are choosing to reduce their exposure instead.
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