Spot Bitcoin exchange-traded funds (ETFs) in the United States experienced a surprising reversal in investor sentiment on April 8, 2024, as net outflows reached approximately $224 million. This shift in sentiment occurred despite Bitcoin’s price reaching a three-week high of $72,500 during late trading on the same day.
TLDR
- U.S. spot Bitcoin ETFs saw net outflows of around $224 million on April 8, 2024, despite Bitcoin’s price reaching a three-week high of $72,500.
- Grayscale’s GBTC spot ETF was the main contributor to the outflows, with over $303 million in a single day.
- Other Bitcoin ETFs, such as those from BlackRock, Fidelity, and Bitwise, experienced modest inflows.
- Despite GBTC’s outflows, new ETFs have acquired approximately 520,544 BTC in three months, resulting in a net increase of around 220,000 BTC.
- The outflows come amidst a surge in crypto product investments, with a total of $646 million poured in, pushing the year-to-date inflows to an unprecedented $13.8 billion.
The most significant contributor to the outflows was Grayscale’s GBTC spot ETF, which recorded a single-day net outflow surpassing $303 million. Since its conversion to a spot ETF in January, GBTC has seen a total outflow of $15.8 billion, equivalent to 48% of the Bitcoin held in the fund before the conversion.
However, not all Bitcoin ETFs faced the same fate. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) experienced modest inflows of $21.3 million and $6.3 million, respectively. The Bitwise Bitcoin ETF (BITB) emerged as the leading fund on the day, attracting an inflow of $40.3 million, while ARK 21Shares’ ARKB secured the third position with a $9.3 million inflow.
Despite the outflows from GBTC, HODL15Capital highlighted that new ETFs have acquired 520,544 BTC in three months, resulting in a net increase of approximately 220,000 BTC. This suggests that while some investors may be taking profits or adjusting their positions, others continue to show confidence in Bitcoin’s long-term prospects.
4/8 net negative due to $303m GBTC outflows.$GBTC had 620,000 #Bitcoin at the time of the ETF conversion and has lost 300,742 BTC since.
On the flip side, the new ETFs bought 520,544 Bitcoin in 3 months, for a net increase of ~220,000 BTC.
— HODL15Capital ???????? (@HODL15Capital) April 9, 2024
The recent outflows come amidst a surge in investments into crypto products, with a total of $646 million poured in, pushing the year-to-date inflows to an unprecedented $13.8 billion. Bitcoin remains the primary focus for investors, with inflows totaling $663 million. However, short-bitcoin investment products saw outflows for the third consecutive week, amounting to $9.5 million, indicating a minor capitulation among bearish investors.
Industry executives, such as Ripple CEO Brad Garlinghouse, remain optimistic about the future of cryptocurrencies. Garlinghouse predicts that the total market value of cryptocurrencies will double this year, largely driven by spot ETFs and the upcoming Bitcoin halving. He believes that the introduction of real institutional money through ETFs is a significant factor contributing to this positive outlook.
As the cryptocurrency market continues to mature and gain mainstream acceptance, the performance of spot Bitcoin ETFs will likely remain a closely watched indicator of institutional sentiment.
