BlackRock’s Bitcoin exchange-traded fund (ETF) experienced its second-ever outflow since its launch in January. The iShares Bitcoin Trust ETF (IBIT) recorded a $13.5 million net outflow on August 29.
This event follows a $36.9 million outflow on May 1, marking another challenging day for Bitcoin ETFs.
BlackRock BitcoinETF Faces $13.5M Outflow
The broader market also saw significant redemptions, with all 11 U.S.-based BitcoinETFs witnessing a combined net withdrawal of $71.8 million on August 29. Fidelity’s Wise Origin Bitcoin Fund (FBTC) had the highest outflow of $31.1 million.
Grayscale’s Bitcoin Trust (GBTC) came in second with a $22.7 million outflow, while the $13.5 million outflow from IBIT was the third largest of the day. Nevertheless, IBIT reported a net inflow of $224.1m just a few days before, on 26 August.
This was the biggest inflow to IBIT since July 22, when it recorded net inflows of $526.7 million. However, the recent outflow is attributable to investors’ sentiment during a general bear market of Bitcoin prices.
ARK BitcoinETF Gains $5.3M Amid Decline
The only fund that recorded a net inflow on August 29th was Cathie Wood’s ARK 21Shares Bitcoin ETF. It pulled in $5.3 million, the complete opposite of the redemptions seen in other Bitcoin ETFs.
However, this inflow proves investors’ confidence in ARK’s fund even if the overall market is down. The performance of Bitcoin ETFs on August 29 also illustrates the instability of cryptocurrency markets.
Such outflows were noticed while the price of Bitcoin declined by 3.43% within the past week, at a value of $58,751 per coin as of writing this article on CoinMarketCap.
Grayscale Ethereum Trust Faces $5.3M Outflow
It was not only BitcoinETFs that witnessed outflows, as US-based spot Ether ETFs also witnessed small net outflows of $1.7 million on August 29. The Grayscale Ethereum Trust (ETHE) saw a $5.3 million outflow, which followed the pattern of daily redemptions since the product’s launch in July.
On the other hand, the Grayscale Ethereum Mini Trust (ETH) recorded a relatively small net inflow of $3.6 million, which could not even come close to the losses recorded for the other products with higher fees.
Ether’s price also followed the same trend, trading 5.64% lower on a weekly basis at $2,517.06. This could have been the case to some extent, leading to the outflows witnessed in Ether ETFs. The sustained outflows from the Grayscale Ethereum Trust indicate that investors are still cautious in the cryptocurrency market.
Mixed Flows Show Uncertainty in Crypto ETFs
The latest redemptions in the Bitcoin and Ether ETFs show investors still have a rather bearish outlook. The large amounts of money streaming into the IBIT and ARK 21Shares BitcoinETF show that some investors still believe there is potential in the market.
However, the overall trend is a rising concern about the stability of the price of cryptocurrencies. Experts have opined that fluctuations in Bitcoin and Ether prices impact investors’ decisions.
Due to price changes, some investors redeem their investments from ETFs; on the other hand, some others try to take advantage of the situation and buy. The mix of inflows and outflows indicates volatility, a common characteristic of the cryptocurrency market.
