Bitcoin Spot ETFs Witness Substantial Withdrawals

U.S. spot Bitcoin exchange-traded funds (ETFs) are grappling with an ongoing wave of capital flight, marked by a fifth consecutive day of significant outflows totaling nearly $140 million on Thursday alone.

Leading the exodus was Grayscale’s GBTC, which saw a hefty daily outflow of $53 million. Fidelity’s FBTC was not far behind, reporting $51 million in withdrawals, as per data from SoSoValue. Bitwise’s BITB experienced a $32 million outflow, and VanEck’s ETF recorded a $4 million reduction. The Invesco and Galaxy Digital fund reported $2 million in outflows.

In stark contrast, BlackRock’s IBIT stood as the sole beacon of positivity, witnessing $1 million in net inflows and an impressive daily trading volume of $565 million on Thursday. Other ETFs managed by Ark Invest, Valkyrie, Franklin Templeton, WisdomTree, and Hashdex saw stagnant flows with no net movement.

The aggregated trading volume for these ETFs amounted to $1.16 billion on Thursday, reflecting a decline from $1.7 billion on Tuesday. Since their inception in January, the 11 spot Bitcoin funds have amassed total net inflows of $14.67 billion as of Thursday. Notably, the market was closed on Wednesday due to a public holiday.

Bitcoin Price Dips Amid Market Activity

The value of Bitcoin dipped by 1% over the past 24 hours, settling at $64,471 at the time of this writing, according to The Block’s Bitcoin price page.

Global ETF Developments: Australia’s Milestone

In related developments, Australia’s premier stock exchange, ASX, launched its inaugural spot Bitcoin ETF on Thursday. The VanEck Bitcoin ETF, functioning as a feeder fund, channels investments into the U.S.-listed VanEck Bitcoin Trust (HODL). Although spot crypto ETFs have been available in Australia since 2022, the introduction of this Bitcoin fund underscores a concerted effort to keep pace with the burgeoning crypto ETF trends in the U.S. and Hong Kong.

U.S. ETF Issuers Eyeing Ether Funds

Meanwhile, in the United States, ETF issuers are progressing towards unveiling the nation’s first set of spot Ether funds. According to insiders, the Securities and Exchange Commission provided feedback on the S-1 forms for Ether ETFs last week. Issuers are now in the process of revising and resubmitting the forms, aiming for completion by Friday, as reported by The Block earlier this week.

Conclusion

The recent trend of substantial withdrawals from U.S. spot Bitcoin ETFs highlights a period of volatility and investor uncertainty. As market dynamics continue to evolve, both in the U.S. and globally, the landscape of cryptocurrency investment is poised for further transformation. The introduction of new funds and the regulatory feedback on Ether ETFs will be critical in shaping the future of crypto asset management.