Unprecedented Outflow in Bitcoin (BTC) Spot ETFs Amidst Market Downturn: A New Record

  • The United States Spot Bitcoin ETFs market is experiencing significant outflows, with over $500 million leaving in a single day.
  • This development occurs amidst a broader market crash for Bitcoin, which has seen consistent declines over the past month.
  • These outflows are the first of their kind since the launch of these ten Spot Bitcoin ETFs.

Amidst a broader market crash for Bitcoin, the United States Spot Bitcoin ETFs market sees record-breaking outflows exceeding $500 million in a single day, marking a first since their launch.

Spot Bitcoin ETFs Experience Massive Outflows

Reports reveal that ten Spot Bitcoin ETFs in the United States have witnessed record-breaking outflows for the first time since their inception. On May 1, these ETFs collectively recorded an outflow of $563.7 million. This massive sell-off comes after the Federal Open Market Committee (FOMC) meeting, where Federal Reserve Chair, Jerome Powell, announced the decision to maintain interest rates at their current levels. This decision, contrary to expectations of a rate cut, has triggered further declines in Bitcoin’s price.

Details of the Outflows

According to data from Farside, a London-based investment management company, Fidelity Wise Origin Bitcoin Fund (FBTC) experienced the largest outflow of $191.1 million, followed by Grayscale Bitcoin Trust ETF (GBTC) with approximately $167.4 million outflows. iShares Bitcoin Trust (IBIT), managed by global asset management company, BlackRock, recorded its first outflow since its launch in January, with a significant $36.9 million in outflows. Other Bitcoin ETFs witnessing substantial outflows include Bitwise Bitcoin ETF (IBIT), Ark 21Shares Bitcoin ETF (ARKB), Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), Valkyrie Bitcoin Fund (BRRR), VanEck Bitcoin Trust (HODL), and WisdomTree Bitcoin Fund (BTCW).

Conclusion

This mass exodus from Spot Bitcoin ETFs could indicate a potential shift in investor sentiment, particularly in light of the FED’s announcement. However, Bloomberg ETF analyst, James Seyffart, reassures that inflows and outflows are a normal occurrence in an ETF. Meanwhile, the Bitcoin market is crashing, with the cryptocurrency’s price experiencing significant declines over the past month. As of now, Bitcoin’s price is trading significantly below the $60,000 support level at $57,632. Despite these declines, some analysts suggest that it may be time to buy the dip, as Bitcoin’s 30-day Market Value to Realized Value (MVRV) is currently down by 11.6%.

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