Wall Street Sells Bitcoin as ETFs Experience Four Consecutive Days of Outflows Signaling Bearish Trend
Bitcoin (BTC) has experienced a drop from $72,000 to $65,000, resulting in a 10% decline over the past 12 days. This has impacted Wall Street’s confidence in the cryptocurrency, with Bitcoin spot ETFs facing four consecutive days of selling pressure.
Over the last four days, there has been a significant outflow of 10,630 BTC, amounting to over $700 million, from the 10 ETFs. This data was obtained from CoinGlass on June 19 to gain insights into Wall Street’s sentiment towards holding Bitcoin.
Fidelity’s FBTC has been at the forefront of the selling activities on Wall Street, with more than 50% of the daily outflows coming from this investment firm. Fidelity removed 5,390 BTC from its exchange-traded fund, while other firms had moderate or no outflows.
Grayscale’s GBTC followed as the second ETF with the highest outflows in the past four days, trailed by Ark’s ARKB. The two funds sold 2,665 BTC and 2,254 BTC, respectively, since June 13. Notably, BlackRock’s IBIT saw two days of inflows and the most recent two days of zero activity.
The total market cap of Wall Street’s Bitcoin spot ETFs amounts to $58.58 billion, with the funds holding $52.64 billion in assets under management (AUM) and a daily volume of $1.87 billion. IBIT leads the market with a $19.65 billion capitalization and $17.24 billion AUM, closely followed by GBTC with an $18.04 billion market cap and a higher $18.05 billion AUM.
In terms of holdings, BlackRock’s iShares company holds the most BTC with 305,590, followed by Grayscale with 280,320 BTC. Fidelity ranks third with 170,150 BTC, while other funds hold less than 50,000 BTC.
The current price of Bitcoin stands at $65,485, struggling to maintain key support levels. Failure to recover the $66,000 zone could lead to a drop towards $60,000, posing further losses for investors. Additionally, Bitcoin has lost its 30-day exponential moving average, indicating weakness and a lack of momentum.
This technical analysis aligns with the outflow trend observed in Wall Street’s Bitcoin derivatives, which are lagging indicators. Despite this, the flows from the funds reflect recent activity from traders speculating on Bitcoin and provide insights into what these firms anticipate for the future of BTC.
Investors should exercise caution with their exposure to speculative cryptocurrencies like Wall Street’s Bitcoin, considering the risks inherent in this market. Alternatively, they can explore utility-focused projects that have organic demand and adoption from users worldwide.