Bitcoin News – Bitcoin ETFs Face $91 Million Outflows: Ark, Grayscale, BlackRock Hit Hard
Bitcoin News – U.S. spot bitcoin exchange-traded funds (ETFs) experienced significant outflows on Wednesday, totaling $91.76 million. This marks the second consecutive day of negative net flows for bitcoin ETFs in the U.S., reflecting investor concerns and market volatility.
ARKB Leads Outflows, Grayscale and BlackRock Follow
The most significant outflow was from Ark and 21Shares’ ARKB, which saw $60.28 million leave the fund. This was followed by Grayscale’s GBTC, the second-largest spot bitcoin ETF by net assets, with net outflows of $27.31 million. BlackRock’s IBIT, the largest spot bitcoin ETF by market share, also reported its first daily outflows since September 9, with $13.74 million exiting the product. Meanwhile, Bitwise’s BITB registered $11.51 million in outflows. Seven other spot bitcoin ETFs in the U.S. recorded no flows during this period.
Bitcoin Price Movement and Market Activity
The overall trading volume for these bitcoin ETFs dropped sharply to $1.66 billion on Wednesday, down from $2.53 billion the previous day. The decline in volume accompanies a slight dip in Bitcoin’s price (BTC), which was down 0.46% over the past 24 hours, trading at approximately $61,183 at the time of reporting. Meanwhile, Ether (ETH), another leading cryptocurrency, saw a more significant drop of 3.77%, with its price standing at $2,391.
Spot Ether ETFs See Inflows Despite Overall Market Decline
In contrast to bitcoin ETFs, spot Ethereum (ETH) ETFs in the U.S. saw net inflows of $14.45 million on Wednesday. This followed a day of outflows totaling $48.52 million on Tuesday, signaling a reversal in investor sentiment toward ether. BlackRock’s ETHA led the inflows, with $18.04 million entering the fund. However, Franklin Templeton’s EZET recorded net outflows of $1.81 million.
The only ether ETF to register negative flows was Grayscale’s Ethereum Trust (ETHE), which saw outflows of 5.4 million. The six other spot ether ETFs in the market reported no net flows during this period.
Ethereum Trading Volume Declines Alongside Bitcoin
Like bitcoin ETFs, the total trading volume for the nine spot ether ETFs in the U.S. declined as well. Wednesday’s trading volume amounted to $197.82 million, down from $290.81 million on Tuesday, indicating a broader decrease in trading activity across both bitcoin and ether ETFs.
Market Outlook and Investor Sentiment
The ongoing outflows in bitcoin ETFs reflect a cautious approach by investors amidst volatile market conditions. However, the inflows into ether ETFs suggest that sentiment around Ethereum remains relatively positive, with investors potentially viewing the recent price dip as a buying opportunity.
As the crypto market continues to evolve, the performance of these ETFs will be closely watched by institutional and retail investors alike, especially given the regulatory scrutiny surrounding the crypto industry. Both bitcoin and ether ETFs serve as key indicators of investor confidence in the digital asset space, and their flow trends provide valuable insights into market sentiment.
FAQ: U.S. Spot Bitcoin ETFs Outflows
What caused the $91 million outflows from U.S. spot bitcoin ETFs?
The outflows were primarily led by Ark’s ARKB fund, which saw $60.2 million exit, followed by Grayscale’s GBTC with $27.31 million. Market fluctuations and possible investor repositioning could have contributed to these significant outflows.
Which ETFs were most affected by the outflows?
Ark and 21Shares’ ARKB was the most affected, with $60.28 million in outflows. Grayscale’s GBTC and BlackRock’s IBIT also saw notable outflows, with $27.31 million and $13.74 million, respectively.
Did all spot bitcoin ETFs experience outflows?
No, while Ark’s ARKB, Grayscale’s GBTC, and BlackRock’s IBIT saw significant outflows, seven other spot bitcoin ETFs recorded zero flows.
How did the outflows affect overall trading volume?
The total trading volume for all U.S. spot bitcoin ETFs dropped to $1.66 billion on Wednesday, down from $2.53 billion the previous day, reflecting reduced investor activity.
Leave a comment