Bitcoin ETFs Record Major Outflows on Monday, Grayscale and Bitwise Hit Hard
Bitcoin ETF– Spot Bitcoin exchange-traded funds (ETFs) in the U.S. experienced a sharp reversal on Monday, witnessing a significant outflow of nearly $438.4 million. This marked the end of a five-day streak of net inflows that had accumulated almost $3.4 billion. The outflows were widespread, with seven of the tracked bitcoin ETFs reporting negative flows. According to data from SoSoValue, Bitwise’s BITB led the charge, with over $280 million in outflows. Following closely was Grayscale’s GBTC, which saw $158.2 million in outflows. Fidelity’s FBTC experienced outflows of $134.7 million, while Ark and 21Shares’ ARKB logged $110.9 million in negative flows.
The outflows on Monday were notable, especially considering the recent growth in bitcoin ETF investments. Despite the overall negative sentiment on Monday, BlackRock’s IBIT, the largest spot bitcoin ETF, reported positive inflows of $267.8 million, further solidifying its dominance in the space. Additionally, Grayscale’s Mini Bitcoin Trust saw smaller but positive inflows of $420,460.
Bitcoin ETF Market Faces Increased Volatility
On Monday, the total trading volume for the 12 bitcoin ETFs reached $5.6 billion, a slight increase from $5.4 billion the previous Friday. Despite the outflows, the cumulative net inflow for the year stands at $30.4 billion. As of now, the collective assets under management (AUM) for these funds total $102.2 billion, representing about 5.4% of the entire bitcoin market capitalization. This shows that, despite the short-term fluctuations, bitcoin ETFs continue to account for a significant portion of market activity.
However, the bitcoin market itself has faced some retracement this week. After reaching highs near $100,000 last week, bitcoin’s price dropped to around $94,500 on Monday. According to The Block’s bitcoin price page, the cryptocurrency fell 3.55% in the past 24 hours, now trading at approximately $94,515 at the time of writing. This decline in bitcoin’s price may have contributed to the outflows seen in bitcoin ETFs, as investors reassess their positions in response to market fluctuations.
Ethereum ETFs Experience Modest Inflows Amid Bitcoin Outflows
In contrast to the volatility in the bitcoin ETF market, spot Ethereum ETFs in the U.S. saw modest inflows of $2.8 million on Monday. The inflows were more evenly distributed across funds, with Bitwise, Fidelity, and VanEck each recording net inflows. However, 21Shares’ fund and Grayscale’s two Ethereum ETFs experienced net outflows. This suggests that investor sentiment in Ethereum ETFs remains somewhat mixed, despite the overall positive market outlook for ETH.
Ethereum ETF trading volume increased significantly to $711.2 million on Monday, up from $373.9 million just last Friday. The total flow for the nine Ethereum funds in the U.S. reached $109 million, reflecting continued investor interest in the second-largest cryptocurrency. As the cryptocurrency markets continue to evolve, Ethereum ETFs are likely to remain an important player in diversifying exposure to digital assets.
Leave a comment