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Weekly Bitcoin ETF withdrawals reached $172.89 million, mirroring the market downturn

Investors are pulling their funds from Bitcoin exchange-traded funds (ETFs) to the tune of $172.89 million amidst a price drop below $76,500, a response to increased trade discord and market volatility.

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Investors pulled out $172.89 million from Bitcoin ETFs amid a price slump below $76,500, suggesting...
Investors pulled out $172.89 million from Bitcoin ETFs amid a price slump below $76,500, suggesting rising apprehensions due to fresh trade disputes and market volatility.

A Rapid Recap on U.S. Bitcoin ETFs

Weekly Bitcoin ETF withdrawals reached $172.89 million, mirroring the market downturn

took a nose dive last week, recording a whopping $172.89 million in net outflows. Approximately 700 Bitcoin were withdrawn from these funds, with Grayscale's GBTC experiencing the largest outflows at $95.5 million.

Trading Volatility Strikes Again

The decrease in ETF demand coincided with Bitcoin's drop below $76,500, slumping 18.5% from its peak of $108,786. The escalating trade tensions, fueled by President Trump's new tariff announcements, have left investors feeling cautious, pushing the Fear & Greed Index down to 40.

ETF Performance Split

The remainder of Bitcoin ETFs ended the week either flat or bucking the trend. Grayscale's spot Bitcoin Trust, Franklin Templeton's EZBC, and Fidelity's FBTC attracted inflows of $61.8 million, counteracting the overall outflows.

The mixed performance highlights varying investor sentiment across different fund offerings, hinting at a split in market opinion.

Broader Market Landscape

Bitcoin's performance in Q1 2022 marked its worst showing since 2018, with the cryptocurrency market facing pressure from multiple fronts. The proposed tariffs raised fears of a potential global trade war, causing market turbulence.

Bitcoin's current price of $88,614 represents an 18.5% drop from its all-time high of $108,786, with daily trading volume flooding to $4.43 billion on April 4 in response to evolving market conditions.

Despite the recent downturn, Bitcoin ETFs cumulatively manage $94.45 billion in assets, translating to an ownership of approximately 5.65% of Bitcoin's total market value. Sadly, Ethereum ETFs also faced investor withdrawals, with weekly outflows totaling $49.93 million.

Enriching the Conversation

  • Notable Outflows: BlackRock's IBIT reported $430.82 million in outflows on May 30, 202514, followed by Fidelity's FBTC with $113.71 million and ARK & 21Shares' ARKB with $120.14 million3.
  • Overall Outflows: The combined net outflow from 10 Bitcoin ETFs reached approximately $745.93 million as of June 2, with a total of 7,157 BTC withdrawn3.
  1. The largest outflows from Bitcoin ETFs were experienced by Grayscale's GBTC, followed by significant outflows reported by BlackRock's IBIT and ARK & 21Shares' ARKB, totalling $745.93 million and 7,157 BTC withdrawn collectively.
  2. Concurrently, Ethereum ETFs also faced weekly outflows amounting to $49.93 million, mirroring the cautious sentiment in the broader cryptocurrency market.
  3. Despite these outflows, Bitcoin ETFs cumulatively manage $94.45 billion in assets, demonstrating ongoing interest in cryptocurrency finance and technology, especially given the ownership of approximately 5.65% of Bitcoin's total market value.

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