Bitcoin ETFs Still Hold Over $50 Billion Despite the Sell-Off

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Bitcoin ETFs outflow hits $1.3 billion in the last two weeks, but analysts predict markets will bounce back in the months ahead.

Despite the recent market sell-off, Bitcoin exchange-traded funds (ETFs) have maintained a substantial presence, holding over $50 billion in assets under management (AUM). 

Over the last two weeks, $1.3 billion has been withdrawn from the U.S. Bitcoin exchange-traded funds (ETFs) as Bitcoin’s price keeps declining. 

Data from Farside Investors shows that Bitcoin ETFs had a total outflow of over $1.298 billion in the past two trading weeks, with Grayscale accounting for $517.3 million.   

Spot Bitcoin ETFs Outflow

BlackRock’s Bitcoin ETF is the only fund to see positive results, bringing in $43.1 million over the last two weeks. During the same period, bitcoin’s price dropped 11.6%, going from $69,476 on June 10 to $61,359 now, according to TradingView data.   

The recent wave of outflows from spot Bitcoin ETFs is the largest since April. These investment funds saw total net withdrawals of over $1.2 billion from April 24 to early May.   

Bitcoin’s Downward Wave 

Jonathan de Wet, the chief investment officer at digital asset trading firm ZeroCap, expects bitcoin to drop to around $57,000 in the coming weeks. He mentioned that the crypto market continues to decline and attributed the development to upcoming repayments to Mt. Gox creditors.      

Many market analysts have expressed worries about the significant downward pressure ahead. They point to bitcoin sales by the German government and the anticipated impact of nearly $9 billion in BTC repayments to Mt. Gox creditors expected in July.     

However, many analysts believe that the Mt. Gox creditor repayments might not have as negative an impact as people expect. 

According to CoinGlass data, as bitcoin’s price fell below $61,000, more than $122 million worth of leveraged long positions were sold off, increasing the risk that it could drop below the crucial $60,000 level. The liquidations were triggered because bitcoin’s price fell over 5% in a single day, briefly dropping below $61,000 at 1:25 pm UTC on June 24.