Bitcoin ETFs Witness Record Outflows on May 1st

Crypto News- The United States spot Bitcoin Exchange-traded Fund (ETF) market finds itself in a concerning rut, grappling with dwindling investor interest over recent days.

Wednesday marked a particularly grim milestone as all nine spot Bitcoin ETFs collectively bled out their largest daily net outflows. Not even the heavyweight offerings from investment giants like BlackRock Inc (NYSE: BLK) and Fidelity Investments could escape unscathed.

Bitcoin ETFs Witness Record Outflows on May 1st

Totaling a staggering $563.7 million, the outflows painted a grim picture for the market. Fidelity’s FBTC bore the brunt, hemorrhaging over $191 million in a single day. This was a notable blow, especially compared to Grayscale’s GBTC, which has been hemorrhaging funds since the inception of spot Bitcoin ETF trading in the US.

Grayscale’s woes were relatively subdued, with net outflows amounting to $167.3 million, according to SoSo Value data. ARK 21Shares, eagerly awaiting a verdict from the US Securities and Exchange Commission (SEC) on its Ethereum ETF application, suffered $98.1 million in daily net outflows, securing its position as the third-largest loser of the day.

BlackRock’s IBIT followed suit with $36.9 million in outflows, marking a rare occurrence for the stalwart, which has historically been a top performer. Similarly, Bitwise’s BITB shed $29 million, signaling a departure from its usual trajectory.

Amidst the exodus, Hashdex’s DEFI emerged as a lone beacon of stability, recording no daily outflows. However, the ETF failed to attract any inflows either, with activity stagnating at $0 for the day. In contrast, other Bitcoin ETFs managed to scrape together a cumulative inflow of $11.2 billion by day’s end.

April Exodus: Spot Bitcoin ETFs Witness a Sudden Shift in Investor Sentiment

April spelled further trouble for the market, breaking a three-month streak of consecutive inflows for spot Bitcoin ETFs. The month saw net outflows totaling $343.5 million, with April 29 alone witnessing over $51.5 million exiting the market. ARK 21Shares bore the brunt of this decline, shedding $31.34 million in a single blow. Despite the gloom, Grayscale retained its lead in outflows, with approximately $2.5 billion fleeing the GBTC ETF.

Back in March, JPM Securities had painted a rosy picture, anticipating a surge in inflows for these ETFs over time. Optimism was high, with projections suggesting inflows could reach $220 billion within three years. However, with the current market outlook, such lofty ambitions seem increasingly improbable. Only time will reveal whether market dynamics can steer spot Bitcoin ETFs towards brighter horizons.