HomeCryptoBitcoinFidelity leads the outflow of Bitcoin ETFs: precarious situation for the crypto

Fidelity leads the outflow of Bitcoin ETFs: precarious situation for the crypto

The Bitcoin ETFs recorded significant outflows yesterday, with Fidelity leading the pack of sellers with negative numbers amounting to 106 million dollars. Overall, all the BTC exchange-traded funds report outflows of 226 million dollars, marking the worst figure of the week.

In the meantime, Jurrien Timmer, Director of Global Macro at Fidelity, praises Bitcoin and defines it as “exponential gold,” highlighting its ability to preserve value over time and emphasizing the acceleration in the technological adoption curve.

Let’s see all the details below.

Bitcoin ETF yesterday: outflows of 226 million, Fidelity among the managers who sold the most

Yesterday, Thursday, June 13, Bitcoin ETFs in the USA reported outflows of 226 million dollars, marking the third negative figure of the week, with Fidelity standing out as the fund with the most sales worth 106 million dollars.

As shown by the SoSoValue dashboard, all major managers have supported the outflow trend: GBTC of Grayscale recorded a red figure of 62 million dollars, while ARKB of Ark Invest and BITB of Bitwise reported outflows of 53 million and 10 million dollars respectively.

Only IBIT by BlackRock recorded a positive inflow of 18 million dollars, continuing undisturbed in its solitary mission that in just 6 months has led it to gain an AUM of 20.38 billion dollars, establishing itself as the largest Bitcoin ETF fund.

It is worth noting that the ETFs offered by Valkyrie, Franklin Templeton, Hashdex, and WisdomTree have not shown any inflow or outflow activity, while those of Invesco and VanEck report slightly negative numbers.

bitcoin etf fidelity
Source: https://sosovalue.xyz/assets/etf/us-btc-spot

It had been since the end of April that such large total outflows had not been seen, especially from Fidelity, while the month of May was characterized by purchases with only 5 days of outflow compared to 17 days of massive inflow.

It should be noted that between May and June there were 19 consecutive days of inflow, which added about 10 billion dollars to the crypto sector.

With the latest data from yesterday, the Total Net Assets of the USA funds that invest in Bitcoin return to 58.53 billion dollars after surpassing the record of 60 billion dollars last week.

The Total Net Inflow cumulative amounts to 15.3 billion dollars, highlighting a trend of US investors to accumulate large shares of the main cryptocurrency in a short time.

Bitcoin etf fidelity
Source: https://sosovalue.xyz/assets/etf/us-btc-spot

This reversal of the positive trend that characterized trading activity in the month of May and part of the beginning of June comes after the release of the US inflation data and the latest responses from the FED regarding the pressure in the context of interest rate cuts on government bonds.

In particular, Wednesday, June 12, the data of the “Consumer Price Index” was published, showing numbers better than expected with the CPI for the month of May at 3.3% (forecast 3.4%) and the core CPI at 3.4% (forecast 3.5%).

Despite this situation that highlights a slight decrease in the country’s inflation with the consumer price index falling, The Federal Reserve has hesitated again to cut interest rates on bonds, remaining on alert for a still delicate situation in the country.

Inflation, according to Powell, is not yet completely under control. Furthermore, last week’s data on Non-Farm Payrolls, which reported a stronger-than-expected labor market, have discouraged FED members from starting the season of quantitative easing, putting an end to the restrictive monetary policy.

The next appointment for the rate cut is in July, but it is much more likely that the first reduction of 25 basis points will occur in September. FedWatch Tool shows a probability of success of 60.5%.

Source: https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

In the last week BTC loses 3.97%, while still remaining graphically within the high range that goes from 73,700 dollars to 67,000 dollars, teetering between a possible leg up that would inevitably lead to marking new all-time highs, and a leg down that would establish the current construct as an unequivocal top.

The general market outlook is positive but we are still in an area of uncertainty that could bring volatility in the coming weeks.

The director of Fidelity Macro Global defines BTC as “exponential gold” and highlights its uniqueness as a value reserve asset

While Fidelity’s Bitcoin ETF unloads 106 million dollars yesterday, the corporate director of Global Macro Jurrien Timmer publicly defined the cryptocurrency as “exponential gold highlighting its similarity to physical gold and its ability to preserve value over time.

The comments by Timmer were shared through a series of posts, in which he delved into the evolving role of Bitcoin in the financial ecosystem.

In particular, the analyst of the ETF Fidelity shared on X their vision, highlighting how Bitcoin increases its technological action curve in a manner similar to what was done by the internet and cellular phones in the past.

The digital scarcity (the first ever verifiable) of the cryptographic currency and its growing acceptance as a financial asset worldwide, contribute to elevating its value and its condition as a “store of value”, just like gold.

Note how Ethereum also follows an action curve as steep as Bitcoin.

In his posts, Timmer observed how the rate of technological adoption and the growth of the network under the on-chain spotlight represent two critical factors for the evaluation of Bitcoin.

In fact, as explained by the director of Global Macro at Fidelity, the cryptocurrency is still in the initial attestation phase compared to other traditional assets but the way the underlying network grows and the trend with which mainstream adoption continues, offer a clear vision of how the asset could become increasingly similar to gold.

Here are his words published on X:

“The chart below shows the growing network of Bitcoin along a simple power curve. The number of non-zero addresses is converging towards this power curve, with the price of Bitcoin oscillating around it like a pendulum,” he stated. “This is the unique series of Bitcoin’s boom-bust cycles.”

Although obviously Timmer is biased as the head of a financial department at Fidelity, which offers exposure in Bitcoin ETFs, it is clear that the cryptocurrency is increasingly gaining strong recognition within the landscape of institutional investors.

The legitimization of Bitcoin as a reserve value asset could push it towards new horizons, and more and more ETF funds; pension funds and institutional investors might include it in their medium to long-term investment strategies.

Timmer concludes his speech by stating that to see Bitcoin towards new highs, we should wait for an increase in the network’s on-chain metrics:

“The growth of the Bitcoin network has slowed down in recent months, while its price has continued to rise. In my opinion, this divergence between price and adoption could explain why Bitcoin has slowed down a bit along its path towards potential new all-time highs. The pendulum will swing only to a certain point. For the new highs to continue, the network might need to accelerate again.”

Alessandro Adami
Alessandro Adami
Graduated in "Information, Media and Advertising", for over 4 years interested in the cryptocurrency and blockchain space. Co-Founder of Tokenparty, community active in spreading crypto-enthusiasm. Co-founder of Legal Hackers Civitanova marche. Information technology consultant. Ethereum Fan Boy and supporter of Chainlink oracles, strongly believes that smart contracts will be central in the development of society.