The American spot bitcoin exchange-traded funds (ETFs) encountered a notable reversal in fortunes on Monday, as they collectively witnessed a daily net outflow of $64.93 million, effectively terminating their unprecedented streak of 19 consecutive days of inflows.

Leading the charge in outflows this week was Grayscale's GBTC, with a substantial total of $40 million exiting the fund. Other prominent ETFs, including Invesco and Galaxy Digital's BTCO, also experienced investor redemptions, with net outflows amounting to $20 million, as per data from SosoValue. Valkyrie's bitcoin ETF reported net outflows of $16 million, while Fidelity's FBTC saw $3 million in net outflows, marking its first negative flow since May 2.

In contrast, BlackRock’s IBIT, the largest spot bitcoin ETF by net assets, bucked the trend with net inflows of $6 million, while Bitwise’s BITB recorded $8 million of inflows.

The conclusion of the remarkable 19-day inflow streak, which amassed over $4 billion in net inflows, underscores the dynamic nature of investor sentiment amidst prevailing market volatility. The dip in Bitcoin's price last Friday, catalyzed by conflicting U.S. non-farm payroll and unemployment data, injected a dose of uncertainty into the market, prompting investors to retreat from riskier assets, according to analysis from crypto trading firm QCP Capital. As of now, Bitcoin is trading at $68,311, according to The Block’s bitcoin price page.

Market participants are now closely monitoring the impending release of the U.S. Consumer Price Index (CPI), a pivotal gauge of inflation, alongside the Federal Open Market Committee meeting scheduled for later this week. While the CME Group foresees a 99.4% likelihood of the Fed maintaining the current interest rate range of 5.25% to 5.50%, a Reuters poll of economists suggests a divergent view, with expectations of two rate cuts starting in September.

Meanwhile, U.S. ETF issuers are eagerly awaiting feedback from the Securities and Exchange Commission (SEC) on their S-1 registration statements, which were submitted around the end of last month. Approval of these S-1 forms by the SEC is a prerequisite for the official launch of spot ether funds by issuers.

Upon launch, spot ether ETFs are poised to capture a significant share of the current flows directed towards spot bitcoin ETFs, with Bitfinex head of derivatives Jag Kooner projecting a potential allocation of up to 20%. This anticipation underscores the burgeoning appetite for diversified exposure within the burgeoning digital asset landscape, as investors navigate the evolving regulatory and macroeconomic backdrop with keen interest and cautious optimism.