Bitcoin ETFs in U.S. Record Unprecedented Outflows Amid Market Downturn
Summary:
U.S. spot Bitcoin Exchange-Traded Funds (ETFs) have experienced record net outflows, with BlackRock’s iShares Bitcoin Trust (IBIT) seeing its first-ever outflow day. Other Bitcoin ETFs also saw substantial outflows on the same day, amounting to $526.8 million. The slump coincides with a 10.7% fall in Bitcoin's value over the past week. Despite these developments, analysts note that such inflows and outflows are normal in the life of ETFs and that Bitcoin ETFs continue to operate efficiently.
The U.S.'s spot Bitcoin Exchange-Traded Funds (ETFs) have seen an unprecedented number of net outflows, with BlackRock's iShares Bitcoin Trust (IBIT) also experiencing its inaugural day of outflow. According to HODL15 Capital, $36.6 million flowed out of BlackRock's Bitcoin fund on May 1. In addition, nine other Bitcoin ETFs witnessed a combined outflow of $526.8 million. However, the Hashdex Bitcoin ETF (DEFI), in contrast to the others, saw zero flows, as reported in the preliminary data from Farside Investors.
The greatest outflow on record for a single day came from the Grayscale Bitcoin Trust (GBTC), recording $167.4 million in net outflows. The Fidelity Wise Origin Bitcoin Fund (FBTC) followed closely, documenting a historic outflow of $191.1 million. This unprecedented event marked the most significant single-day outflow for U.S. spot Bitcoin ETFs, with ARK 21Shares Bitcoin ETF and Franklin Bitcoin ETF respectively registering outflows of $98.1 million and $13.4 million.
This news arrives at a time when Bitcoin's value has dipped by 10.7% within the past week. Despite these events, Nate Geraci, the president of ETF Store, highlighted that the iShares Gold ETF and SPDR Gold ETFs have experienced outflows of $1 billion and $3 billion respectively this year. Yet, gold's value has risen by 16% since the start of the year, as Geraci noted in a recent post on May 2.
According to James Seyffart, a Bloomberg ETF Analyst, despite the recent downturns, Bitcoin ETFs continue to function efficiently across all sectors. He noted that these significant inflows and outflows are a standard occurrence within ETFs' daily operations.
Published At
5/2/2024 6:06:34 AM
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