- The US saw significant daily net outflows in its spot BTC exchange-traded funds (ETFs) on Wednesday.
- Only two funds experienced net inflows, while the rest reported either zero flow or net outflows.
- According to SoSoValue data, Grayscale’s GBTC had net outflows of $26.99 million, countered by Fidelity’s FBTC which saw $6.55 million in net inflows. Nine other ETFs, including BlackRock’s IBIT, recorded zero flow.
Worrying Outflows in US Spot BTC ETFs Spell Concern for Crypto Market Stability
Significant Outflows in US Spot BTC ETFs Amid Declining Trading Volumes
Wednesday observed substantial net outflows of $20.45 million in US spot BTC ETFs, reflecting waning investor confidence amidst market volatility. Of the eleven ETFs, only two saw net inflows, highlighting a disturbing trend.
Detailed Breakdown of Fund Movements
Grayscale’s GBTC reported the most significant net outflows at $26.99 million. Fidelity’s FBTC was the sole bright spot, witnessing $6.55 million in net inflows. Nine other ETFs, including BlackRock’s IBIT, recorded zero activity, demonstrating investor hesitation. Overall trading volume fell to around $800 million, down from $995 million on Tuesday, and drastically lower than March’s daily volume of eight to ten billion dollars.
Impact on BTC Prices and Broader Crypto Market
According to CoinMarketCap, Bitcoin’s price fell by 3% in the last 24 hours, settling at $58,903. This drop is mirrored across the broader cryptocurrency market, which contracted by 3.5%, signaling overall bearish sentiment. Since their inception in January, these ETFs have accumulated net inflows totaling $14.62 billion, illustrating their previous popularity.
Awaiting SEC Approval for Spot Ethereum ETFs
While Bitcoin ETFs are experiencing turbulence, US issuers continue to await the SEC’s final green light for spot Ethereum ETFs. On May 23, the SEC approved 19b-4 forms for eight spot Ethereum ETFs, with issuers submitting revised S-1 filings for review. Bloomberg ETF analyst James Seyffart indicated that these Ether funds might be listed by the weekend or the week of July 15.
Conclusion
The current trends in spot BTC ETF outflows, coupled with the waiting game for Ethereum ETF approval, underscore a period of uncertainty in the cryptocurrency market. Investors should remain vigilant and conduct thorough research before making decisions, given the inherent risks. The movements within these funds and the broader market dynamics remain crucial points of observation in the coming weeks.
