US Bitcoin ETFs Surpass Record 7-Day Outflow Streak as Billions Leave Funds

The longest streak of net outflows for the US spot Bitcoin exchange-traded funds (ETFs) lasted seven straight days in April/May 2024. At the time, US$1.2 billion (AU$1.9 billion) left the ETFs.

The current market correction – which saw BTC tumble below US$83k for the first time since late last year – is now poised to break that record.

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While data for yesterday’s US trading isn’t all in, the data for Grayscale’s GBTC and BTC funds and Franklin’s EZBC already show net negative outflows, though Ark’s ARKB comes in at net zero.

ETFs Suffer Some of Their Largest Losses to Date

And the amount of money exiting the ETFs is even more unsettling: with US$2.9 billion (AU$4.6 billion), it marks one of the largest cumulative outflows for the ETFs.

The heaviest hits were to BlackRock’s IBIT and Fidelity’s FBTC, with US$763 million (AU$1.2 billion) and US$902.9 million (AU$1.4 billion) respectively in net outflows over the seven-day period.

Combined, the US Spot Bitcoin ETFs now hold 1.139 million BTC – or 5.424% of all supply – valued currently at US$95.99 billion (AU$154 billion).

Will Crypto Go Lower for Longer?

The outflows and overall sentiment in crypto are not great, with the Fear and Greed Index still only coming in at 16 – extreme fear, up six points from yesterday when it hit its lowest in over two years.

Analysts believe it will take some time to overcome this slump, with Ki Young Ju, the CEO and founder of analytics platform CryptoQuant, saying that demand for ETFs is low.

Analysts at 10X Research also point to the connection between the ETFs and institutional investors as the force behind the “current Bitcoin ETF unwind”.

The top ten BlackRock and Fidelity Bitcoin ETFs holders are primarily hedge funds or prime brokers, likely holding these positions on behalf of hedge fund clients.

10X Research

Bitcoin Could Consolidate Around $77k, Says Analyst

Meanwhile, regarding the overall cycle, Ki Young Ju said we need more data “to confirm whether we’re entering a bear market”.

Although he expects this cycle to “be the longest bull run in history”, he also cautions that if “demand doesn’t recover, indicators may fully signal a downtrend”.

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Though the CryptoQuant boss believes that chances for BTC to drop below US$77k are low and expects a consolidation thereabouts.

I think the chances of dropping below 77K are low. Even in the worst case, I see a high probability of consolidating around 77K for a few months before moving back up.

Ki Young Ju, CryptoQuant CEO and founder