By
Bena Ilyas
May 17th, 2024
The total April net outflows of $343.5 million has successfully broken the three months of consecutive inflow streak for the spot Bitcoin ETFs.
The United States spot Bitcoin Exchange-traded Fund (ETF) market is not healing from the lack of enthusiasm that it has been faced with in the last couple of days.
Demand has rather gotten worse as it saw its largest daily net outflows from all nine spot Bitcoin ETFs on Wednesday. Even the top-performing Bitcoin ETFs from investment asset management firms BlackRock Inc (NYSE: BLK) and Fidelity Investments were not left out.
Multiple Outflows on All Spot Bitcoin ETFs
A total of $563.7 million was recorded as total net outflows for the ETFs. Fidelity’s FBTC saw the largest outflow of more than $191 million amongst the other ETFs. Compared to Grayscale’s GBTC which has had a trend of massive outflows from the first week that the spot Bitcoin ETFs began trading in the US Fidelity’s outflow was significant.
According to SoSo Value data, the Sonnenshein-led Grayscale registered only $167.3 million in net outflows. ARK 21Shares, which is expecting a decision from the US Securities and Exchange Commission (SEC) this May on its Ethereum ETF application, witnessed $98.1 million in daily net outflows, making its Bitcoin ETF the third largest in terms of daily net outflows.
ARK 21Shares was followed by BlackRock’s IBIT at $36.9 million and Bitwise’s BITB at $29 million. A daily net outflow is quite new for BlackRock considering that it has never experienced only a few in the past. BlackRock’s IBIT has been the most performing spot BTC ETF for the longest time until the hype in the market started dropping recently.
Hashdex’s DEFI stood alone as the only spot Bitcoin ETF without daily outflows on Wednesday but the ETF also recorded $0 inflows on the same day. The other Bitcoin ETFs managed to record a cumulative inflow of $11.2 billion at the end of trading.
April Broke Three Months of Consecutive Spot Bitcoin ETF Inflows
The total April net outflows of $343.5 million has successfully broken the three months of consecutive inflow streak for the spot Bitcoin ETFs. At the close of trading on April 29, the US spot BTC ETF market saw total outflows of over $51.5 million.
On this day, ARK 21Shares Bitcoin ETF was hit with the largest outflow of $31.34 million. Despite all these, Grayscale still led the April outflows with about $2.5 billion exiting the GBTC ETF.
Sometimes in March, JPM Securities had speculated that the flows from these spot Bitcoin ETFs, particularly their inflows, would see a significant rise as time progressed. With so much optimism, it was predicted that the inflows from these ETF products would reach as much as $220 billion within the next three years.
Considering the current outlook of the market, it may be difficult for the spot Bitcoin ETF inflows to go as high as the JPM projected levels. However, time will tell if some metrics can drive the market to better performance.