U.S. spot Bitcoin ETFs report record outflows, totaling $5.94 billion over six weeks, as investors shift focus to AI stocks.
U.S. spot Bitcoin exchange-traded funds (ETFs) have seen a significant downturn, marking their sixth consecutive week of losses with a total net outflow of $90.66 million as of June 18.
In the last six weeks, these funds have experienced withdrawals totaling $5.94 billion, representing the longest period of negative performance since their inception.
Jeff May, COO of the BTSE exchange, attributes this trend to a redirection of capital towards AI stocks, as investors anticipate major IPOs from companies like OpenAI.
Despite the ongoing trend of outflows, the rate of withdrawals has begun to decelerate. Weekly outflows that surpassed $1.7 billion at the start of June have now decreased to $226 million by mid-June.
CoinEx analyst Jeff Ko indicated that the current sell-off may be nearing its conclusion, with many outflows stemming from the closure of arbitrage trades rather than a waning interest in Bitcoin itself. He noted that long-term investors, including pension funds, are continuing to hold their positions.
Bitcoin's price has stabilized around $64,000, although the market continues to face pressure from macroeconomic factors, particularly the hawkish approach of new Federal Reserve Chair Kevin Warsh, who is focused on reducing inflation to 2%.
Analysts suggest that cryptocurrency prices are likely to remain stable until there is a shift in regulatory policies or clear positive developments in the sector.
Additionally, in June, BlackRock introduced the iShares Bitcoin Premium Income ETF on Nasdaq, which offers exposure to Bitcoin's spot price while also engaging in the active selling of covered call options.
