Bitcoin ETFs Face $174 Million Decline Post Mt. Gox Repayments Confirmation

Bitcoin ETFs: Confirmation of Mt. Gox Repayments Leads to $174 Million Loss in Bitcoin ETFs

Bitcoin ETFs: Institutional investors have been actively divesting from U.S. spot Bitcoin ETFs. According to data from SoSovalue, these ETFs recorded net outflows of $714 million in the past five trading sessions.

Yesterday, net outflows reached $174 million following the announcement that Mt. Gox creditors will begin receiving repayments starting next week. Among the ETFs affected, Grayscale’s GBTC fund experienced the largest outflow of $90 million, while Fidelity’s FBTC fund saw $35 million leave.

BTC briefly dipped below the $60,000 mark, hitting $59,086, before rebounding. As of the latest update from CoinGecko, the leading cryptocurrency is now trading at $60,770. Despite a shortened trading week due to the Juneteenth holiday, institutional investors withdrew a significant $544 million from Bitcoin ETFs over four sessions.

In the past 24 hours, crypto markets saw liquidations totaling $330 million following the Mt. Gox news.

The accumulation of negative developments is concerning for investors, especially as market sentiment was already strained by the Federal Reserve’s unexpectedly hawkish stance. The impending repayment of approximately $9 billion worth of Bitcoin to Mt. Gox creditors next week could potentially escalate market volatility if creditors decide to sell their holdings.

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