On June 10, Bitcoin investment funds in the United States encountered a notable decrease in net inflows, breaking a nearly three-week streak of continuous positive flows. A total of 11 spot Bitcoin ETFs collectively witnessed a significant net outflow of $64.93 million during this period. Among the impacted funds, Grayscale's GBTC fund experienced the most substantial outflow, amounting to $40 million over the week. Invesco and Galaxy Digital's BTCO also faced notable net outflows totaling $20 million, while other funds observed investor redemptions.

Factors Influencing ETF Movements

Valkyrie's Bitcoin ETF reported an outflow of $16 million, and Fidelity's FBTC fund saw its first negative flow since early May, with a $3 million outflow. Conversely, BlackRock's IBIT, the largest spot Bitcoin ETF based on net assets, recorded a net inflow of $6 million. Bitwise's BITB fund observed a positive inflow of $8 million. The previous inflow trend, which concluded on May 7, saw over $4 billion in net inflows, totaling $15.62 billion since the beginning of the year.

QCP Capital, a trading firm, attributed Bitcoin's price drop on May 7 to conflicting US economic data, prompting investors to withdraw from riskier assets amid uncertainties.

Significance of Market Observations

Market participants are eagerly awaiting the release of the US Consumer Price Index (CPI) and the Federal Open Market Committee meeting scheduled for later in the week. The CME Group projects a 99.4% probability that the Federal Reserve will maintain its current interest rates between 5.25% and 5.50%. Additionally, a Reuters survey of economists suggests that the Fed may initiate rate cuts twice, commencing in September.

Key Takeaways

• On June 10, 11 spot Bitcoin funds experienced a net outflow of $64.93 million.
• Grayscale's GBTC led the outflows with $40 million.
• Investors are closely monitoring the upcoming US CPI release and Federal Reserve meeting.

US ETF issuers are anxiously awaiting feedback from the Securities and Exchange Commission (SEC) on their S-1 registration statements submitted in the previous month. Approval from the SEC is crucial for the launch of spot Ethereum funds.