While Bitcoin ETFs were supposed to revolutionize the digital asset class, the reality of the situation is rather tragic.
Investors in U.S. Bitcoin ETFs pulled out a significant amount of money on June 13, with the total net outflow reaching $226.21 million.
This sell-off was led by Fidelity’s FBTC fund, which experienced its second-biggest day of investor withdrawals ever, at $106 million according to SoSoValue data. Grayscale’s GBTC also saw a decline in investment, with net outflows of $62 million. Similarly, Ark Invest and 21Shares’ ARKB witnessed $53 million flow out of the fund.
US Investors React To Bitcoin ETFs
Investor sentiment in U.S. spot Bitcoin ETFs turned negative yesterday, with outflows recorded across several funds. Bitwise and VanEck’s offerings each saw roughly $10 million redeemed, while Invesco and Galaxy Digital’s BTCO witnessed $3 million in outflows.
Bucking this trend was BlackRock’s IBIT, the largest spot Bitcoin ETF by net asset value. IBIT actually attracted new investment, bringing in $18 million on Thursday. Despite yesterday’s sell-off, it’s important to note that all 11 U.S. spot Bitcoin ETFs have seen a combined net inflow of $15.30 billion since their launch in January.
This positive trend is overshadowed somewhat by a 1.48% dip in the price of Bitcoin over the past 24 hours, with the current price sitting at $66,704 according to data.
Ether ETF Update
The head of the Securities and Exchange Commission, Gary Gensler, recently hinted at potential approvals for spot Ether ETFs this summer. The SEC gave these funds an initial green light last month, but individual issuers still need approval for their registration statements before launch. Experts at JPMorgan predict these Ether ETFs could be trading by November.
Analysts believe spot Ether ETFs could attract a significant portion of investment currently going towards spot Bitcoin ETFs, with estimates as high as 20%. However, some argue that the lack of staking features in these Ether ETFs, due to regulatory concerns, might make them less attractive to institutional investors.
