Streak of Investor Exodus from Bitcoin Exchange-Traded Funds Reaches Two Weeks

A prolonged exodus of funds from US-based spot Bitcoin exchange-traded funds has persisted, with a staggering $3.97 billion in BTC liquidations occurring over a 12-day period, according to an analysis of SoSoValue data by Finbold as of June 3. This significant outflow has resulted in the total BTC holdings of these funds dwindling to approximately $85 billion. The primary driver of this trend is the substantial net sell-off witnessed in BlackRock's iShares Bitcoin Trust, which has hemorrhaged around $2.939 billion in the past 12 days, leaving its BTC holdings at a valuation of roughly $52.18 billion. Another notable contributor to this trend is the Fidelity Wise Origin Bitcoin Fund, which has experienced a net cash outflow of nearly $403 million, bringing its total BTC holdings to $12.10 billion as of Wednesday. The cumulative effect of these outflows has exerted considerable downward pressure on the Bitcoin price, which has plummeted by approximately 15% over the past month, from a rejection point near $82,000 to a current trading price of $67,260. The short-term trajectory of BTC remains intimately tied to the actions of spot ETFs, particularly the iShares Bitcoin Trust. In a development that may foreshadow further sell-offs, BlackRock recently transferred 6,000 BTC, valued at around $403 million, to Coinbase Prime, as indicated by data from Arkham Intelligence. Conversely, a reversal in the outflow trend, with US spot BTC ETFs resuming their accumulation of BTC, could potentially catalyze a rebound in the flagship cryptocurrency's price.