Spot bitcoin ETF net outflows hit highest level yet on day 9 of trading

The 10 funds have seen three consecutive days of outflows as $429 million left Grayscale’s GBTC Wednesday

article-image

Artwork by Crystal Le

share

Spot bitcoin ETFs saw the highest level of net outflows in a single day on Wednesday as flows into BlackRock’s product slowed.

The 10 US funds holding BTC directly endured outflows of $158 million on their ninth day of trading, according to Bloomberg Intelligence data — the highest in a single day thus far. 

Loading Tweet..

Grayscale Investments’ Bitcoin Trust ETF (GBTC) continued to weigh the group down, with $429 million leaving the fund. 

Read more: As GBTC outflows continue, will the largest bitcoin ETF be dethroned?

While BlackRock’s iShares Bitcoin Trust (IBIT) saw inflows of $66 million, the gains were a notable dip from previous days. IBIT had reeled in $272 million and $160 million on Monday and Tuesday, respectively. 

Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) led the slate of bitcoin ETFs on Wednesday with inflows of roughly $126 million. 

The $158 million of outflows marked the third consecutive day of combined outflows for the 10 spot bitcoin ETFs. 

Read more: Bitcoin ETF Tracker

After the funds notched net inflows of $43 million on Friday, their outflows totaled $76 million on Monday and $106 million on Tuesday. 

Overall, spot bitcoin ETF net inflows stand at $824 million since the funds launched on Jan. 11, Bloomberg Intelligence data indicates. Inflows for the ETFs — when excluding the outflows of higher-priced GBTC — is $5.2 billion.

David Lawant, head of research at crypto prime brokerage FalconX, said in an X post that the driving forces of spot bitcoin ETF flows — GBTC’s heavy outflows and the sizable net gains from IBIT and FBTC — “will both taper off.” 

“While the former dominates in the short run, the latter will dominate in the medium/long run by a mile,” Lawant added.

Read more: GBTC’s asset bleeding to blame for week of flat crypto product flows

Bitwise Chief Investment Officer Matt Hougan has said he believes spot bitcoin ETFs could see $55 billion in net flows in their first five years on the market. 

21Shares President Ophelia Snyder told Blockworks in an interview earlier this month that a number of investors will be slow to adopt spot bitcoin ETFs. Others that do might start with small allocations before ramping those positions up later on.

“So I think this fixation on the short-term flows is crazy short-sighted and largely not the point,” she said.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit

article-image

The Boston Globe reports that lawyer John Deaton is weighing a possible bid