Spot Bitcoin ETFs Experience Reversal in Outflows
Spot Bitcoin exchange-traded funds (ETFs) in the United States have experienced a significant turnaround in their recent outflow trend. On Monday, these funds recorded net inflows of $28.72 million, effectively ending an eight-day period marked by negative flows. This shift highlights a renewed interest in Bitcoin investments amid a tumultuous market.
Leading Contributors to Inflows
Fidelity’s FBTC has emerged as a standout performer, bringing in a remarkable $28.6 million. Close behind was Bitwise’s BITB, which added $21.99 million according to data from SoSoValue. Other funds that contributed to the upward trend include Ark Invest and 21Shares’ ARKB, which attracted $6.81 million, and Invesco’s BTCO, which saw net inflows of $3.14 million. These results indicate a re-engagement by investors in Bitcoin ETFs after a challenging week.
Grayscale’s GBTC Faces Continued Outflows
Despite the positive inflow numbers from other Bitcoin ETFs, Grayscale’s GBTC has remained a persistent underperformer, experiencing $22.76 million in outflows on the same day. Additionally, BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, reported outflows of $9.06 million. Notably, IBIT has remained stagnant or shown negative activity since August 26, reflecting a broader struggle to attract capital.
Total Market Activity and Cumulative Inflows
In terms of market engagement, the 12 Bitcoin ETFs operating in the U.S. collectively noted a daily trading volume of $1.61 billion on Monday, which is a decline from $2.39 billion recorded the previous Friday. Since their inception in January 2024, these Bitcoin ETFs have managed to achieve a cumulative net inflow of $16.92 billion, showcasing their overall resilience in a volatile market.
Recent Data and Ethereum ETF Dynamics
On September 9, 2024, notable figures emerged: the Bitcoin spot ETF saw a total net inflow of $28.72 million, while GBTC recorded outflows of $22.76 million and FBTC drew in $28.60 million. Additionally, Ethereum spot ETFs continue to experience downward pressure, with a reported net outflow of $5.20 million on Monday, marking the fifth consecutive day of negative flows. Grayscale’s ETHE led these outflows significantly, with $22.64 million, while Grayscale Ethereum Mini Trust saw inflows of $7.97 million.
General Market Trends and Investor Sentiment
The landscape for digital asset investment products has faced substantial challenges, with outflows totaling $726 million over the past week—matching the largest outflow recorded earlier in March of 2024. Bitcoin has been particularly impacted, with outflows amounting to $643 million. Interestingly, short-Bitcoin products have seen minor inflows of $3.9 million, revealing that some investors are hedging against potential price declines for the leading cryptocurrency.
Ongoing Challenges for Ethereum ETFs
Ethereum ETFs are facing significant hurdles as they recorded substantial outflows since their launch. As of September 7, 2024, the cumulative net outflow for these funds reached $573 million, with a daily net outflow recorded at $5.98 million. Despite occasional inflows, the predominant trend continues to be negative, underlining ongoing investor caution.
Crypto-Related ETFs Continue to Thrive
Amidst these challenges, crypto-related ETFs are still leading the charge in the ETF market. Remarkably, among the 400 new ETFs launched in 2024, the top four consist of spot Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, and Bitwise’s Bitcoin ETF Trust. Additionally, the iShares Ethereum Trust ETF has notably surpassed $1 billion in inflows, establishing itself as the seventh-largest ETF launch of 2024, showcasing the continued interest in digital assets within the broader financial market.