Shifting Dynamics in Bitcoin ETF Market Amid Major Outflows

By: Eva Baxter

Bitcoin Exchange Traded Funds (ETFs) recently experienced substantial outflows with data reflecting a $165.0 million outflow on April 17, the largest since April 8. Leading institutional platform, Grayscale GBTC, registered outflows to the tune of $133.1 million. The continuous outflows led to an overall tally of $16,594.7 billion. Concurrently, Ark ARKB logged an outflow of $42.7 million while Bitwise BITB experienced its first outflow since inception, amounting to $7.3 million.

These outflows appear widespread, however, BlackRock IBIT has maintained its stature with consecutive inflows, albeit at a declining rate, with the most recent inflow being $18.1 million. Yet, this downturn in inflows since April 12 has raised substantial questions regarding the sustainability of the inflows. Despite these outflows, overall Bitcoin ETFs have witnessed net inflows of about $12,271.0 billion.

Bitcoin's spot ETFs market has been witnessing fluctuating flows post their launch. While some ETFs have seen considerable volumes, others have reported zeroizing flows, indicating a mixed response from investors. Notably, BlackRock’s IBIT and Grayscale’s GBTC have recorded significant flows, with both inflows and outflows observed recently.