Fidelity’s FBTC, the once-hot ETF, bore the brunt of the selling pressure, seeing its second-largest net outflow day ever with $106 million leaving the fund.
Investors appear to be cooling off on US spot Bitcoin ETFs, with these funds experiencing a significant net outflow yesterday. Data from SoSoValues reveals $226.21 million, leaving these ETFs, which allow traditional exchange-traded fund structures to offer exposure to Bitcoin.
Photo: SoSoValue
Fidelity’s FBTC, the once-hot ETF, bore the brunt of the selling pressure. It saw its second-largest net outflow day ever, with a staggering $106 million leaving the fund. This follows a period of strong inflows for FBTC, highlighting the potential volatility of investor appetite in the crypto space.
BlackRock Inflows Defy Trend
While FBTC experienced the largest outflow, other major players in the spot Bitcoin ETF market also saw outflows. Grayscale’s GBTC lost $62 million, and Ark Invest and 21Shares’ ARKB saw $53 million leave. Even smaller players like Bitwise and VanEck witnessed net outflows of around $10 million each.
However, there was one bright spot. BlackRock’s IBIT, the largest spot Bitcoin ETF by net asset value, went against the trend and recorded net inflows of $18 million. This suggests that some investors still believe in Bitcoin’s long-term potential.
Despite yesterday’s outflows, it’s important to keep the bigger picture in mind. Since their launch in January, US spot Bitcoin ETFs have collectively accumulated a staggering $15.30 billion in net inflows. This indicates that, overall, investor interest in gaining exposure to Bitcoin through ETFs remains strong.
Prospects for Spot Ether ETFs
While Bitcoin ETFs face a temporary setback, the regulatory outlook for Ether ETFs is improving. SEC Chair Gary Gensler recently indicated that a decision on spot Ether ETFs might come this summer. This could be a major development, possibly attracting new investments into the cryptocurrency market.
Analysts at JPMorgan predict that spot Ether ETFs could launch before November, capturing up to 20% of the investments currently going into spot Bitcoin ETFs. However, there are concerns. Crypto derivatives trader Gordon Grant notes that the lack of staking options in these Ether ETFs due to regulatory uncertainty might deter institutional investors.
At the time of writing, Bitcoin price stands at $66,946, marking a slight 0.75% decline in the last 24 hours and around 6% decline over the past week amid the flat consumer price index (CPI) for May.
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