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ETF investors brace as Bitcoin price aligns with realized price ETF investors brace as Bitcoin price aligns with realized price

ETF investors brace as Bitcoin price aligns with realized price

Data via Glassnode

Bitcoin ETF investors challenged as BTC's decline below $60k tests investor confidence.

Quick Take

On July 3, Farside data revealed a total outflow in Bitcoin (BTC) exchange-traded funds (ETFs)ย of $20.5 million, marking the second consecutive trading day of net withdrawals.

The only outflow came from Grayscale’s GBTC, which saw a substantial $27.0 million exit, bringing its total outflows to a staggering $18.6 billion. In contrast, Fidelity’s FBTC experienced the only inflow, amounting to $6.5 million, which increased its total net inflow to $9.2 billion. Other ETF issuers reported no activity, neither inflows nor outflows.

Bitcoin ETF Flow Table: (Source: Farside)
Bitcoin ETF Flow Table: (Source: Farside)

This data coincided with BTC losing its crucial $60,000 support level, currently trading around $58,000. The realized price for ETF buyers since Jan. 11 stands at $57,960, closely aligning with the current BTC price. This situation presents a critical juncture for ETF investors as the BTC price hovers around their cost basis, potentially testing their resolve in the market.

Bitcoin: Exchange Average Withdrawal Price (by Year)
Bitcoin: Exchange Average Withdrawal Price (by Year)

The market’s response to these movements and the price fluctuation will be pivotal in determining the short-term trajectory of Bitcoin ETFs, particularly for those closely tied to recent purchase prices.