The first week of June is over, and the Spot Bitcoin [BTC] ETFs saw withdrawals of billions of dollars between the 1st and the 5th of June.
In total, during the first week of June trading week, BTC ETFs saw net outflows of $1.72 billion, the second-largest weekly outflow since launch.
However, the outflow trend that had been ongoing since the 15th of May was broken on the 4th of June by $3.2 million in inflows. That said, the inflow was so small that it was unable to end the outflow trend, and the week ended with $325.7 million.
Winners and losers of the week
The largest withdrawals in this case were $1.38 billion from BlackRock’s IBIT and $201.9 million from Fidelity’s FBTC. Morgan Stanley’s MSBT, the new player in the market, saw $35.1 million in inflows. The others observed zero flows.
Interestingly, the outflow trend continued on the 8th of June, but the total withdrawals decreased to $91.4 million, with outflows totaling $232.9 million for IBIT alone. While some asset managers saw no flows at all, others were able to see minimal inflows.
Bitcoin’s market dynamics
All of this occurred as the price of Bitcoin had dropped from about $73,000 on the 1st of June to $62,639.14 at the time of publishing.
This proves that the price action was not representative of the outflows. This is also because the outflow streak did not begin this week and had been occurring since May as well. It was the decline in the price of Bitcoin that was actually caused by outflows.
Meanwhile, the Funding Rate also stayed positive in green between the 1st and the 5th of June, suggesting that traders were still generally bullish.
However, Bitcoin’s price kept falling, indicating that market strength was waning and that long positions with a lot of leverage were absorbing losses rather than promoting a recovery.
What about other ETFs?
Similar to Bitcoin ETFs, the Ethereum [ETH] ETF also saw modest outflows totaling $173 million. As of the 8th of June, however, inflows had kicked in once again, totaling $82.4 million.
AMBCrypto previously noted that Ethereum might continue to be vulnerable even though it is exhibiting short-term exhaustion until ETF flows stabilize and buyers start aggressively absorbing supply.
Interestingly, the Solana [SOL] ETF mostly sustained an inflow streak, with an exception on the 3rd of June, when it experienced outflows of $12.8 million.
Following an exact pattern as the SOL ETF, the XRP ETF also saw just one day of outflow on the 3rd of June worth $5.34 million.
Final Summary
- The Spot Bitcoin ETF saw inflows worth $1.72 billion, in which BlackRock’s IBIT saw the maximum outflows.
- Ethereum ETFs followed similar patterns as Bitcoin ETFs, but SOL ETFs and XRP ETFs were almost in sync with each other.