Fidelity’s FBTC Leads $226M Outflow from US Bitcoin ETFs

Fidelity's FBTC Leads $226M Outflow from US Bitcoin ETFs

The U.S. spot Bitcoin exchange-traded funds (ETFs) experienced a significant net outflow of $226 million on Thursday. This development marks a notable shift in the investment landscape for Bitcoin ETFs.

Major Outflows in Bitcoin ETFs

According to data from SoSoValue, the 11 U.S. spot Bitcoin ETFs saw a total of $226.21 million in net outflows. Fidelity’s FBTC was particularly affected, witnessing its second-largest net outflow day since its debut, with $106 million withdrawn. Other notable outflows included:

  • Grayscale’s GBTC: $62 million
  • Ark Invest and 21Shares’ ARKB: $53 million
  • Bitwise and VanEck: Each saw around $10 million in net outflows
  • Invesco and Galaxy Digital’s BTCO: $3 million in net outflows

BlackRock’s IBIT Bucks the Trend

Contrary to the trend, BlackRock’s IBIT, the largest spot Bitcoin fund in terms of net asset value, reported a net inflow of $18 million. This influx highlights a divergence in investor sentiment towards different Bitcoin ETFs.

Market Context and ETF Performance

Since their introduction in January, the 11 spot Bitcoin ETFs in the U.S. have collectively accumulated a net inflow of $15.30 billion. However, the recent outflows suggest a potential shift in investor behavior or market sentiment. Over the past 24 hours, Bitcoin’s price has decreased by 1.48%, now standing at $66,704.

Upcoming Decisions on Spot Ether ETFs

In related news, Securities and Exchange Commission (SEC) Chair Gary Gensler indicated that the regulatory body might make a decision on the approval of spot Ether ETFs “over the course of” this summer. Last month, the SEC gave preliminary approval for spot Ether ETF applications, and issuers are currently awaiting the green light for their S-1 registration statements to officially launch these funds.

Analysts at JPMorgan have suggested that spot Ether funds could begin trading before November this year. Bitfinex analyst Jag Kooner speculated that these new funds could attract up to 20% of the investments currently directed into spot Bitcoin ETFs. However, Gordon Grant, a crypto derivatives trader, expressed skepticism about institutional interest in spot Ether funds, citing the removal of staking components due to regulatory uncertainties.

The recent net outflows from U.S. spot Bitcoin ETFs underscore a dynamic and evolving market landscape. As the SEC prepares to make decisions on spot Ether ETFs, the crypto investment environment continues to develop, potentially reshaping how investors engage with digital assets.

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