This week, the US Bitcoin ETFs market saw its largest capital outflow since May. On Tuesday, the Bitcoin US Spot ETFs recorded a whopping $287.78 million in daily outflows. This correlates with the recent Bitcoin price fluctuations and its inability to hold a stable support level.
Bitcoin ETFs See Rising Redemptions Amid Uncertainty
Redemptions from major Bitcoin ETFs in the US are picking up as market conditions remain uncertain. BlackRock’s iShares Bitcoin Trust (IBIT) recorded no net inflows and outflows, even though it is the largest physically backed Bitcoin ETF. Since its inception in January, it has received more than $21 billion in net inflows.
The largest outflow was recorded by Fidelity’s FBTC, at $162.26 million, followed by Grayscale’s GBTC, at $50.39 million. Other ETFs, such as those from VanEck, Valkyrie, Invesco, and Franklin Templeton, also witnessed negative inflows. Together, these funds reveal a new trend of caution among investors.
ARKB and Bitwise Bitcoin Funds See Losses
ARKB fund by Cathie Wood, managed by ARK Invest and 21Shares, lost $33.6 million on Tuesday, adding to the selloff. At the same time, Bitwise’s BITB revealed a net outflow of $24.96 million on the same day.
These figures indicate that the downturn impacts virtually all types of funds in the market. However, the recent trends suggest that these funds have started performing in the opposite direction.
Specifically, the past week reported a net inflow of $202 million into US Bitcoin ETFs, with the largest contribution coming from BlackRock’s IBIT, which added $224 million. However, at the end of the week, all US Bitcoin funds had shed $480 million in value.
Bitcoin Price Volatility Fuels ETF Outflows
The price of Bitcoin has been quite volatile, which has further contributed to the volatility of the ETF market. Bitcoin surged past 3% two days ago to hit $59,343, but the market has since corrected. However, it has not even come close to the all-time high it recorded in the past.
As of the time of writing, Bitcoin was trading at $56,700.02, a 3.54% decline in the last 24 hours. Bitcoin has dropped by 4.65% in the last week, which has only added to the market’s woes. The decline in the price and the increasing outflows from ETFs point to a difficult phase for Bitcoin and its derivatives.
The outflows in spot Bitcoin ETFs show that investors are still rather conservative. BlackRock’s IBIT, which used to be a star in raising funds, has not seen any inflows. Other major ETFs are also witnessing a similar trend of capital flight.
The constant price volatility of Bitcoin and the outflow of funds from ETFs have contributed to increased volatility. As investors try to avoid volatility, the US Bitcoin ETF market might face further pressure in the coming weeks.
This may be due to more general concerns about Bitcoin’s prospects and its potential to bounce back from the current decline.
