Key Points
- US spot Bitcoin ETFs experienced a net daily outflow of $120.64 million.
- Grayscale’s GBTC, Fidelity, and Ark Invest’s funds were among those affected.
Spot Bitcoin exchange-traded funds (ETFs) in the United States witnessed a net outflow of $120.64 million in a single day. This occurred as eight products recorded no flows, according to SoSoValue’s data.
Spot Bitcoin ETFs’ Performance
Grayscale’s GBTC experienced an outflow of $130.42 million. In contrast, Fidelity and Ark Invest’s funds were the only two to record inflows, amounting to approximately $10 million. Additionally, eight other funds, including BlackRock’s IBIT and Bitwise’s BITB, saw no flows. Notably, BlackRock’s IBIT ended its 71-day positive streak.
According to Rachael Lucas, a crypto analyst at BTC Markets, days with zero inflows are common and do not necessarily indicate a product’s failure. She added that such occurrences could also be influenced by market performance and geopolitical tensions, which reflect the complexities beyond ETF flows.
Market Reactions and Future Predictions
Joe Caselin, head of institutional marketing of BIT crypto exchange, echoed Lucas’s sentiment. He noted that zero flows in an ETF are not unusual and could signify a slowdown in ETF excitement. Caselin further stated, “Bridging fiat into the Bitcoin narrative takes time, and we will continue to see fresh inflows coming in waves as the slow but unstoppable machine of TradFi clicks with crypto.”
Bloomberg ETF Analyst James Seyffart previously explained that ETF shares are created or destroyed in units. This only occurs when there is a significant enough mismatch in supply and demand, which is why zero flows can frequently be observed in such products.
The combined trading volume for all 11 spot bitcoin ETFs is approaching $230 billion.