• Bitcoin ETFs experienced a significant reversal in fortunes with a combined $65 million in net outflows on Monday, ending a 19-day streak of net inflows.
  • Grayscale’s GBTC led the outflows at $40 million, while Bitwise’s BITB saw $7.6 million in inflows amidst broader market volatility and upcoming economic indicators.

In a surprising turn of events, U.S.-listed spot bitcoin exchange-traded funds (ETFs) saw a combined $65 million in net outflows on Monday, bringing an end to a record-setting 19-day streak of net inflows. The outflows were driven by market-wide volatility in both cryptocurrency and broader stock markets.

Grayscale’s GBTC led the outflows with a staggering $40 million, solidifying its position as the ETF with the worst performance in terms of outflows since its inception in January. Over this period, GBTC has accumulated a total of $18 billion in outflows, marking a substantial investor exodus.

Bitwise’s BITB, however, stood out amidst the outflows by attracting $7.6 million in inflows, indicating a potential shift in investor sentiment towards other ETFs in the market.

The broader ETF landscape also saw significant movements: Invesco and Galaxy Digital’s BITCO reported net outflows of $20 million, while Valkyrie’s BRRR ETF saw $16 million in net outflows. Fidelity’s FBTC, which had previously been experiencing a positive flow since early May, faced $3 million in net outflows, highlighting the overall market turmoil.

The recent outflows coincided with a general downturn in the cryptocurrency market, as well as losses in the broader stock markets. Analysts cautioned traders to brace for a volatile week ahead, with significant market events on the horizon. Among these are the eagerly awaited U.S. Consumer Price Index (CPI) reading on Wednesday and a scheduled speech from U.S. Treasury Secretary Janet Yellen on Friday, both of which have the potential to impact riskier assets such as cryptocurrencies.

The Federal Reserve’s monetary policy decision, set to be made at a two-day Federal Open Market Committee (FOMC) meeting starting today, also added to the uncertainty in the market. Comments from the Fed officials could provide further insight into the future direction of the markets.

Bitcoin itself experienced a 2.7% decline over the past 24 hours, erasing gains made last week when it briefly peaked over a two-month high of $70,000. The reversal in Bitcoin’s fortunes reflected the broader market sentiment and contributed to the outflows seen in the ETFs.

Despite the recent outflows, the U.S.-listed spot bitcoin ETFs had been experiencing a period of strong inflows, with more than $4 billion added in the 19 days of trading leading up to Monday. This surge in investor interest had raised hopes of continued growth in the ETF market, making the sudden outflows a significant development.

As the market continues to react to upcoming economic indicators and policy decisions, the future of bitcoin ETFs remains uncertain. Investors and analysts alike will be closely monitoring the impact of these events on the cryptocurrency market and the ETFs that track it.