Spot bitcoin exchange traded funds have suffered outflows on six of the past seven trading days totaling a net $813 million, according to U.K.-based asset manager Farside Investors—part of a wider sell-off in digital asset investments.
Starting June 10, the Grayscale Bitcoin Trust (GBTC) and the Fidelity Wise Origin Fund (FBTC) have seen $413 million and $372 million in outflows, respectively, the most of the 11 funds currently trading. The downturn comes as bitcoin has swooned below $65,000 for the first time since early May, according to crypto markets data provider CoinMarketCap.
Source: etf.com
In a note to etf.com, Joe DiPasquale, CEO of San Francisco-based crypto fund manager BitBull Capital, noted a “tug of war going on between bulls and bears in bitcoin.”
“This week, we are watching sentiment analysis closely as crypto liquidations have become a common phenomenon,” he wrote. “We chalk up much of the liquidations this week to be profit-taking as the price consolidates around $65K and sentiment remains cautious.”
IBIT Flows Slow
ETF funds soared over the latter part of May and into early June, drawing in more than $3.3 billion in inflows over a month-long period. FBTC was a big part of that charge.
On June 4, the fund generated $379 million in inflows on a day in which total inflows reached their second highest daily total since they began trading in early January. But since then, flows have sagged as bitcoin’s price dropped, a result of the profit taking and publicly traded miners aiming to improve their balance sheets.
Read More: Spot Bitcoin ETF Flows Jump, Hit 2nd Highest Daily Mark
Even flows to BlackRock’s iShares Bitcoin Trust (IBIT) have slowed with the fund generating only about $40 million in inflows over the past seven days. IBIT has generated more than $17.6 billion in inflows over its five-month lifespan, the most of any of the funds. GBTC has the most assets under management, although it has bled assets on all but a few days, a reflection partly of its segment high fee. The fund is a conversion from a trust.