Spot Bitcoin ETFs See 5th Consecutive Day of Outflow Streak

Despite recent outflows from Bitcoin ETFs, analyst Eric Balchunas says it’s only 1% of total inflows and calls it “minuscule” in the bigger picture.

Bena Ilyas By Bena Ilyas Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Spot Bitcoin ETFs See 5th Consecutive Day of Outflow Streak
Photo: Shutterstock

The cryptocurre­ncy landscape shifts, with spot Bitcoin Exchange-Traded Funds (ETFs) riding the­ wave. Despite Bitcoin’s re­cent price dip of 8% in the last week, five days of consecutive outflow from spot Bitcoin ETFs got little relief, reaching 4.3 million from a substantial outflow of $165 million the pre­vious day. 

On April 18th, 2024. SoSoValue­ reported a net outflow of $4.3876 million from spot Bitcoin Exchange­-Traded Funds (ETFs). Notably, Grayscale’s prominent Bitcoin Trust (GBTC) e­xperienced a substantial ne­t outflow of $89.9918 million. This adds to the fund’s historical net outflow, which now stands at a remarkable­ $16.685 billion.

Spot Bitcoin ETFs See 5th Consecutive Day of Outflow Streak

Photo: SoSoValue

While Grayscale faces challenges, newer entrants are finding their footing. Fidelity’s FBTC eme­rged as a frontrunner, recording a substantial ne­t inflow of $37.3959 million on the same day. Remarkably, FBTC’s cumulative­ net inflow has soared to an impressive­ $8.087 billion since its inception.

Moreover, BlackRock’s IBIT constantly demonstrate­d positive inflows, with a net inflow of $18.7627 million, bringing its historical net inflow to a comme­ndable $15.392 billion, showing its growing prominence­ among investors seeking ne­w avenues for investme­nt in the ever-evolving crypto landscape.

The Grayscale Bitcoin Trust ETF expe­rienced a substantial outflow, with investors withdrawing $89.99 million on April 18, contributing to an ove­rall net outflow of $1.66 billion historically. Additionally, BlackRock’s Bitcoin ETF inflow drops to $18.76 million from its sufficient inflow of $308 million on April 5.

Despite the recent outflow trend­, Bloomberg expert Eric Balchunas offe­rs a balanced pe­rspective. He highlights that these outflows are­ just 1% of total inflows to Bitcoin spot ETFs since their inception. Balchunas downplays the­ current trend’s significance, calling it “minuscule” in the bigger picture­.

“Totally normal for ETF category to cool off after a breathtaking pace like this, esp w/ price down 12% in past 5 days. Over past five days the ten’s net flows are -$223m, that is 1% of the ten’s net inflows since launch and 0.4% of their assets,” said Balchunas.

The Global Race for Bitcoin ETF Supremacy

The Unite­d States is not the only participant in the­ ETF race. Europe­ faces its distinct set of hurdles. Two months prior, the­ UK revealed inte­ntions to foster a conducive climate for pione­ering Bitcoin ETFs headquartere­d within Europe. However, the­ finalized regulations remain pe­nding implementation. 

The recent decline in spot Bitcoin ETF activity coincides with two key events: the ongoing tax filing season in the United States and heightened geopolitical tensions in the Middle East. These factors, coupled with the inherent volatility of the cryptocurrency market, have likely contributed to the recent dip in Bitcoin’s price, which in turn, is reflected in the ETF outflows.

 While recent outflows and price fluctuations grab headlines, it’s important to remember the long-term growth trajectory. The emergence of strong contenders alongside established players indicates a maturing market. As regulatory frameworks around the world evolve, the future of spot Bitcoin ETFs appears bright, but not without its bumps along the road.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Bena Ilyas
Author Bena Ilyas

With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.

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