Spot Bitcoin ETFs Face $400M in Withdrawals
Spot Bitcoin ETFs– On Thursday, spot Bitcoin exchange-traded funds (ETFs) in the U.S. experienced significant outflows, with a total of $400.67 million exiting these products. This marked the end of a six-day streak of positive flows, signaling a shift in investor sentiment. Among the hardest hit were Ark Investment’s and Bitwise’s ETFs, both recording their largest single-day withdrawals to date.
Fidelity’s FBTC saw the largest outflow, with $179.2 million leaving the fund. This represents the fund’s largest daily net outflow since May 1, according to SoSoValue data. Similarly, Ark and 21Shares’ ARKB ETF saw $161.7 million in outflows, while Bitwise’s BITB recorded withdrawals of $113.9 million. Both of these funds marked their largest daily withdrawals since inception. Both Bitcoin and Ethereum ETFs experienced outflows yesterday, noted Valentin Fournier, an analyst at BRN, This retraction of institutional funds from assets that recently surged but are now losing momentum was anticipated.
BlackRock and VanEck ETFs See Inflows Amid Market Decline
While most Bitcoin ETFs saw outflows, BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, was one of the exceptions, registering $126.5 million in net inflows. VanEck’s HODL also logged a modest $2.5 million in inflows. These funds were among the only two to see positive flows on a day where trading volume shrank significantly.
The total trading volume across these 12 Bitcoin ETFs dropped to $4.8 billion, a noticeable decline from $8 billion the day before. This contraction in trading activity reflects broader market trends as institutional investors pull back amid uncertain macroeconomic conditions.
Ether ETFs Experience Modest Outflows as Ether Price Dips
Spot Ethereum ETFs also recorded outflows on Thursday, albeit to a lesser extent than their Bitcoin counterparts. U.S. Ethereum ETFs saw a total of $3.2 million in net outflows after a strong inflow of $146.9 million the previous day. Grayscale’s ETHE experienced the largest withdrawal, with $21.9 million leaving the fund, while VanEck’s ETHV saw $1.1 million in outflows.
BlackRock’s ETHA, however, posted $18.9 million in inflows, while Invesco’s QETH had smaller inflows of $929,010. Despite these relatively modest gains, the broader trend was negative. The inflation data’s bearish undertone reinforced this trend; however, trading volumes remain high, suggesting potential recovery next week, Fournier added.
As of the latest data, Bitcoin had dipped 2.3% to $87,948, while Ethereum fell 4.5% to $3,056, further highlighting the current market retreat.
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