The spot Bitcoin ETF market has experienced a significant slowdown, marked by continuous outflows over the past four trading sessions. On Tuesday, June 18, for the first time since their launch in January 2024, none of the spot Bitcoin ETFs recorded any inflows, with outflows totaling $152 million. This trend has put pressure on Bitcoin's price, which is currently trading around $65,435.

Outflows and Asset Management

Fidelity's FBTC experienced the highest outflows at $83 million, while Grayscale's GBTC ETF recorded outflows of $62.3 million. As a result of the current outflows, the total assets under management for the spot Bitcoin ETFs have dropped to $14.7 billion.

Dominance of BlackRock and Fidelity

The top two players, BlackRock and Fidelity, cater to a huge part of the total market share. The combined Bitcoin holdings by these two firms in their spot Bitcoin ETFs currently stand at 477,121 BTC, valued at $31.4 billion, which is 262,721 more than those held by MicroStrategy.

Investor Cohort and Concerns

According to Samara Cohen, Chief Investment Officer of ETF and Index Investments at BlackRock, nearly 80% of Bitcoin ETF purchases are driven by "self-directed investors who have made their own allocation, often through an online brokerage account." Hedge funds and brokerages have also shown interest as buyers, while registered investment advisors have been more cautious in their approach.

The advisors' concerns include Bitcoin's notorious price volatility, the cryptocurrency's nascent stage, regulatory compliance, and the crypto's reputation for fraud and scandal. These factors have contributed to the recent outflows and lack of investor interest, putting selling pressure on the Bitcoin price.

Australian Market

In contrast, Australia's spot Bitcoin ETFs have been witnessing minor inflows after their launch last week, suggesting a different market dynamic compared to the US.

Overall, the spot Bitcoin ETF market in the US is facing a significant slowdown, with investors becoming more cautious and withdrawing their funds. This trend could continue to impact the Bitcoin price in the short term, as the market grapples with these changing investor sentiments.