Spot bitcoin exchange-traded funds (ETFs) have experienced significant outflows over the past seven trading days, amounting to a net $813 million, as reported by U.K.-based asset manager Farside Investors. This outflow is part of a broader sell-off in digital asset investments. Since June 10, the Grayscale Bitcoin Trust (GBTC) and the Fidelity Wise Origin Fund (FBTC) have witnessed substantial outflows of $413 million and $372 million, respectively, making them the most affected among the 11 funds currently trading.

This downturn coincides with bitcoin’s price falling below $65,000 for the first time since early May, according to data from CoinMarketCap. The market appears to be in a state of flux, with a notable tug of war between bullish and bearish sentiments. Joe DiPasquale, CEO of San Francisco-based crypto fund manager BitBull Capital, noted that there has been a significant amount of profit-taking as the price consolidates around the $65,000 mark, resulting in cautious sentiment and frequent crypto liquidations.

In contrast, ETF funds had seen robust inflows in the latter part of May and early June, with over $3.3 billion pouring in during a month-long period. The Fidelity Wise Origin Fund (FBTC) was a major contributor to these inflows. On June 4, FBTC recorded $379 million in inflows, contributing to one of the highest daily totals since these funds began trading in early January. However, since then, inflows have diminished as bitcoin’s price decline prompted profit-taking and balance sheet improvements among publicly traded miners.

Even BlackRock’s iShares Bitcoin Trust (IBIT), which has been a significant player in the market, has seen a slowdown in inflows. Over the past seven days, IBIT has attracted only about $40 million in inflows. Despite this slowdown, IBIT has generated more than $17.6 billion in inflows over its five-month lifespan, the highest among the funds. GBTC, despite having the most assets under management, has experienced asset outflows on most days, partly due to its high fees compared to other funds. GBTC’s transition from a trust to an ETF has not stemmed the outflows.

Overall, the current market conditions reflect a period of adjustment and consolidation for bitcoin ETFs, influenced by price fluctuations, profit-taking, and broader market sentiment. Investors will need to closely monitor these trends as they navigate the evolving landscape of digital asset investments.