Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Bitcoin spot exchange-traded funds (ETFs) saw a significant outflow of capital on June 13, continuing its volatile trading behavior this week.
What Happened: The total net outflow for these ETFs amounted to $226 million, raising questions about investor sentiment towards the leading cryptocurrency, according to data from SoSo Value.
Grayscale’s Bitcoin Investment Trust (OTC:GBTC) bore the brunt of the outflow, experiencing a single-day net redemption of $61.53 million.
This suggests that institutional investors may be hesitant towards Bitcoin in the current market climate.
However, a single bright spot emerged with BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) experiencing a net inflow of $18.23 million.
This could indicate a more nuanced approach from some investors, seeking alternative avenues for Bitcoin exposure.
Bitcoin still crept up to $67,000 in early Friday trading, down 1.1% over the past 24 hours.
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Experts Cite Miner Capitulation and Regulatory Uncertainty as Possible Triggers
Market analysts at QCP Capital attribute the outflows to a combination of factors.
They point to the ongoing post-halving capitulation event affecting Bitcoin miners, where miners are forced to sell their holdings to cover operational costs.
Additionally, the recent bankruptcy proceedings involving Flowbank, a key partner of crypto exchange Binance, has likely contributed to investor unease.
QCP Capital further predicts a “quiet summer” for Bitcoin (CRYPTO: BTC), with lower volatility and a lack of major catalysts to drive price movements.
They expect a similar pattern for Ethereum (CRYPTO: ETH), another major cryptocurrency, with the potential for the long-awaited spot ETH ETF approval not happening until late summer according to SEC Chair Gary Gensler.
Accumulation Opportunity Ahead of Potential Ethereum ETF Approval?
Despite the current market sentiment, QCP Capital identifies a potential silver lining for Ethereum investors.
With ETH currently trading at a significant volatility premium compared to Bitcoin, they believe this spread could narrow as investors position themselves for a late-summer S-1 form approval for a spot ETH ETF.
This could present an opportunity for accumulating ETH before a potential price increase.
What’s Next: For a deeper dive into the future of digital assets and expert insights on navigating the current market, don’t miss the Benzinga Future of Digital Assets event happening on Nov. 19.
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