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US Bitcoin exchange-traded funds (ETFs) experienced a significant shift on May 29, marking the end of a remarkable inflow streak.
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This abrupt change came as the market reacted to a drop in Bitcoin prices, leading to a notable $347 million net outflow across multiple funds.
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According to CoinGlass, BlackRock’s iShares Bitcoin Trust (IBIT) stood out amidst the turmoil, maintaining inflow momentum with $125 million added on that day.
US Bitcoin ETFs faced a $347 million outflow on May 29, ending a 10-day inflow streak, while BlackRock’s fund continued to attract investments.
Market Reaction: A Closer Look at the Outflows
The recent outflows represent the first joint retreat for US spot Bitcoin ETFs in over two weeks, showcasing a shift in investor sentiment. Bitcoin’s price decrease of over 3.5% on that day, largely influenced by widespread market fluctuations and trader apprehension, played a crucial role in this reversal. Notably, Bitcoin dropped from an intraday high of $108,850 to slightly below $105,000, prompting some investors to reassess their positions.
Key Contributors to the Outflow
Among the ETFs, the Fidelity Wise Origin Bitcoin Fund (FBTC) bore the brunt of the outflows, shedding $166 million. This significant exit was closely followed by the Grayscale Bitcoin Trust (GBTC), which recorded outflows totaling $107.5 million. Other notable funds such as Bitwise, Ark 21Shares, and Invesco also experienced declines in asset levels, while the funds from CoinShares and WisdomTree remained stable.
BlackRock Continues to Thrive
Despite the broader market pressures, BlackRock’s iShares Bitcoin Trust (IBIT) showed robust resilience, reporting a net inflow of $125 million. This steady trend has kept its inflow streak alive for an impressive 34 consecutive trading days, a testament to investor confidence in BlackRock’s management strategy. Over the past two weeks alone, the fund has accumulated nearly $4 billion in inflows, pushing its total assets under management beyond $70 billion.
Comparative Analysis of ETF Flows
In contrast to the volatility in Bitcoin ETFs, spot Ether ETFs defied the outflow trend by securing a net inflow of $92 million on May 29. This reflects a growing interest in Ether, specifically in the BlackRock’s iShares Ethereum Trust (ETHA), which has amassed a remarkable $4.5 billion in total inflows since its inception in July 2024. This divergence in performance underscores the varying investor sentiment within the crypto market landscape.
Future Outlook Amid Market Shifts
Despite the recent outflows, industry experts suggest that the overall acceptance of cryptocurrencies, particularly Bitcoin and Ethereum, remains strong. Nate Geraci, President of the ETF Store, pointed out that over $9 billion has flowed into spot BTC ETFs over the past five weeks, highlighting sustained investor enthusiasm despite short-term fluctuations.
Conclusion
The recent outflow from Bitcoin ETFs serves as a reminder of the volatility inherent in the cryptocurrency market. However, BlackRock’s continued success indicates a robust confidence in funds that maintain a proactive management approach. Moving forward, investors should remain vigilant, as ongoing regulatory developments and market dynamics will undoubtedly influence future investment strategies in this rapidly evolving asset class.
