Key Points
- Bitwise’s BITB spot bitcoin ETF saw its first daily net outflows of $7.3 million since trading started on January 11.
- Overall flows for spot bitcoin ETFs have significantly slowed since peaking on March 12.
Bitwise’s BITB spot bitcoin exchange-traded fund (ETF) experienced its first daily net outflows of $7.3 million on Wednesday since trading began on January 11.
BlackRock’s IBIT was the only spot bitcoin ETF to register net inflows of $18.1 million on the same day. This was much lower than its average daily inflow of around $230 million. Other funds, including Grayscale’s GBTC fund and Ark Invest’s ARKB, reported significant net outflows of $133.1 million and $42.7 million, respectively.
Trends in Spot Bitcoin ETFs
The combined U.S. spot bitcoin ETFs have seen net outflows totaling $314.8 million for four consecutive trading days. This is the longest outflow streak for a month.
The overall flows for spot bitcoin ETFs have significantly slowed since reaching a net daily inflow of $1.05 billion on March 12. This coincided with a 17% drop in Bitcoin from its latest all-time high of $73,836.
Only BlackRock, Fidelity, Franklin Templeton, and Valkyrie’s spot bitcoin ETFs have yet to experience daily net outflows. Despite this, the overall picture remains strong, with net inflows since the U.S. spot bitcoin ETFs launched totaling $12.27 billion.
Trading Volume and Bitcoin’s Halving
Spot bitcoin ETFs generated $3.5 billion in trading volume on Wednesday, led by BlackRock’s IBIT at $1.8 billion. However, daily trading volume has significantly declined since reaching a record $9.9 billion on March 5, when Bitcoin first broke past its previous peak of around $69,000.
Bitcoin is currently trading for $61,424, down 3% in the last 24 hours and 14% over the past week. Its fourth halving is rapidly approaching, with less than two days or 250 blocks remaining. This halving event, which is programmed to occur every 210,000 blocks, will reduce the subsidy reward for miners from 6.25 BTC to 3.125 BTC per block.
Bitwise CIO Matt Hougan expressed optimism about the halving, stating in a note to clients that he believes the market has underestimated the long-term demand for Bitcoin. He cited the potential for significant allocations from the ETF market and rising concerns about inflation as key drivers.
Analysts at research and brokerage firm Bernstein echoed Hougan’s sentiments, predicting that Bitcoin will resume its bullish trajectory post-halving. They reiterated a target of $150,000 by the end of 2025. Conversely, Coinify CEO Rikke Staer suggested that the halving could lead to a “sell the news” event, as less efficient miners may be forced to sell their existing Bitcoin holdings, potentially overwhelming demand.