Bitcoin Spot ETFs in the US Record Significant Outflows
Bitcoin Spot ETFs in the US have seen a series of significant withdrawals in recent days. On Thursday, the market experienced another wave of net outflows totaling $71.73 million, marking the third consecutive day of negative flows, with the second day of net sales for BlackRock since its launch.
BlackRock: A Sign of Weakness Since May
Among the major market players, BlackRock’s ETF, known as IBIT, has attracted particular attention. As the largest Bitcoin ETF by net assets under management, IBIT recorded net outflows of $13.51 million on Thursday, marking its first day of negative flows since May 1st and its second day since its launch. This reversal raises questions about investors’ confidence in Bitcoin-related products, especially in a context where global economic uncertainty remains high.
Bitcoin continued its decline, losing 4% in price on Friday to approach $58,000, taking Ethereum, Solana, and many altcoins with it.
Grayscale and Fidelity: Persistent Withdrawals
Grayscale, another market heavyweight with its GBTC fund, continued its series of outflows with a withdrawal of $22.68 million. On the other hand, Fidelity’s FBTC fund, which had shown some resistance up until now, saw $31.11 million leave its coffers.
Bitwise BITB and Valkyrie BRRR also suffered losses, with respective outflows of $8.09 million and $1.68 million. These figures, although small, illustrate a broader trend affecting several players in the sector, perhaps indicating a reassessment by investors of the risks associated with digital assets.
Ark and 21Shares: An Exception in a Declining Market
In this gloomy climate, only one exception stands out. The ARKB ETF, a collaboration between Ark and 21Shares, recorded inflows of $5.34 million. This contrasting performance is not impressive, however.
Declining Transaction Volume and Struggling Ethereum ETF
The total transaction volume for the 12 Bitcoin ETFs also decreased, from $2.18 billion on Wednesday to $1.64 billion on Thursday. This decrease reflects a decline in trading activity, which could be attributed to growing investor hesitation in the face of crypto market volatility.
Ethereum Spot ETFs were not left behind. After a day of positive flows, US ETH ETFs recorded net outflows again on Thursday, albeit smaller, with $1.77 million in withdrawals.
The Grayscale Ethereum Trust (ETHE) was hit the hardest, with net outflows of $5.35 million. However, these losses were partially offset by $3.57 million in inflows into the Grayscale Ethereum Mini Trust (ETH).
Outside of these movements, the seven other Ethereum funds did not experience significant flows. The total transaction volume for these nine funds dropped significantly from $151.57 million on Wednesday to less than $100 million on Thursday.
