Largest Spot Bitcoin ETFs Plagued by First Outflows

Bitcoin – Chart – Coins

After weeks of continuous inflows, we are starting to see outflows from some spot bitcoin exchange-traded funds, with the exception of Grayscale Bitcoin Trust (GBTC).

There have been three and a half months of continuous outflows from this ETF, with investors withdrawing $17.1 billion from the fund.

But now other spot bitcoin ETFs have also begun to suffer outflows, such as the Fidelity Wise Origin Bitcoin Fund (FBTC), the third-largest U.S.-listed spot bitcoin ETF with $9.9 billion in assets under management.

On Thursday, investors withdrew $23 million, the first outflow from FBTC.

They also pulled $31 million from the $2.8 billion ARK 21Shares Bitcoin ETF (ARKB), the fund’s fourth daily exit ever (all four have occurred this month).

The $2.2 billion Bitwise Bitcoin ETF (BITB) also recently made its first two debuts this month; A $7 million debut on April 17 and a $6 million debut on April 25.

One spot bitcoin ETF that has yet to experience an exit is the $17.7 billion iShares Bitcoin Trust (IBIT), the second largest.

Although the streak of 71 consecutive days of inflows ended on April 24, flows have yet to turn negative (they have been stuck at zero for two days).

The only other U.S.-listed spot bitcoin fund that has yet to see an exit is the relatively small Franklin Bitcoin ETF (EZBC).

The fund, which has $332 million in AUM, has seen many days with zero flows but no outflows yet.

Variable Flows Expected

Of course, the modest outflows from spot Bitcoin ETFs, excluding GTBC, are not that significant.

All ETFs, including those held mostly by long-term investors, have experienced at least occasional outflows.

For funds holding an asset as volatile as Bitcoin, you’d expect flows to be relatively volatile as well.

Bitcoin price has stagnated in recent weeks. Although still up an impressive 53% since the beginning of the year, Bitcoin has been trading tread water for the past two months.

Perhaps the slowdown in money flowing into spot bitcoin ETFs has something to do with it.

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