Bitcoin ETF Outflows Continue: Are Institutions Losing Interest?

The Bitcoin (BTC) price continues to struggle, and spot Bitcoin ETFs in the US are experiencing significant outflows for seven consecutive days. On June 24th, all nine spot Bitcoin ETFs saw a total of $174.5 billion in outflows, with zero inflows. This trend has continued for the past ten days, exceeding $1 billion in outflows from spot Bitcoin ETFs. Grayscale Bitcoin ETF (GBTC) recorded the largest outflow at $90.4 million, bringing its total outflows since inception to nearly $18.5 billion. Fidelity's FBTC saw the second-largest outflow, with $35 million on Monday. While BlackRock's IBIT has not experienced any outflows since its inception, it has seen multiple instances of zero inflows. The initial enthusiasm surrounding the launch of spot Bitcoin ETFs appears to be fading, as Bitcoin institutional interest is declining amidst global market uncertainty. This trend reflects a divergence between Bitcoin and the US stock market, particularly the Nasdaq index. Bitcoin's recent performance has been range-bound, while the Nasdaq has climbed steadily since mid-May, achieving over 20% year-to-date gains. For Bitcoin to resume its rally, it requires a catalyst for liquidity infusion. A Fed pivot could potentially trigger a strong reversal in Bitcoin's price.