Coinspeaker
Spot Bitcoin ETF Capital Exodus: US Offerings See $51.5M Outflow
Total outflows in the US spot Bitcoin exchange-traded fund (ETF) were more than $51.5 million as of the close of trading on April 29. The volume is on a steady dip after it last peaked on March 5.
Data available from SoSoValue indicates that among the ETFs, ARK 21Shares Bitcoin ETF recorded the largest outflow, with $31.34 million exiting the fund on April 29. The figures came as a surprise to industry watchers as it surpassed other ETFs with approximately $6.68 million.
Major Outflows among Key Spot Bitcoin ETF Products
Grayscale Bitcoin Trust (GBTC), a notable player in the spot Bitcoin ETF market had an outflow of $24.66 million in net withdrawals. The Fidelity Wise Origin Bitcoin Fund, another prominent spot Bitcoin ETF, also faced a net outflow of $6.85 million.
This marks a shift in market outflows recently where outflows were largely propelled by Grayscale Bitcoin Trust. The substantial management fees of GBTC are seen as a discouraging factor for investors compared to offers from competitors in the market.
However, not all US spot Bitcoin ETFs experienced outflows. The Bitwise Bitcoin ETF recorded a notable net inflow of $6.84 million, indicating that some investors are still bullish on Bitcoin’s future. Bitwise’s gain was the highest inflow.
Similarly, the Valkyrie Bitcoin Fund and the Franklin Bitcoin ETF garnered net inflows of $2.67 million and $1.82 million, respectively. Other ETFs, including BlackRock’s iShares Bitcoin Trust, reported net inflows of $0, suggesting a relatively stable investor interest.
Focus Shifts to Hong Kong’s Financial Market
Despite these recent outflows, the accumulated total net inflows for the US-listed spot BTC ETF products stand at nearly $60 billion since receiving regulatory approval and listing. Analysts see this as the result of growing institutional interest in Bitcoin as an investment asset. However, the current outflow trend raises questions about investors’ confidence.
Meanwhile, stakeholders shifted attention away from the US Bitcoin ETFs to Hong Kong’s financial markets which saw the debut of six spot Bitcoin and Ethereum ETFs on the Hong Kong Stock Exchange. This includes the Bosera HashKey Bitcoin ETF (3008.HK), Bosera HashKey Ether ETF (3009.HK), ChinaAMC Bitcoin ETF (3042.HK), ChinaAMC Ether ETF (3046.HK), Harvest Bitcoin Spot ETF (3439.HK), and Harvest Ether Spot ETF (3179.HK).
Except for those in the Chinese mainland, who are still restricted from investing in the products, these assets are available to investors within Hong Kong and even some qualified investors outside the city. These listings represent a significant development for the Asian cryptocurrency market, potentially diversifying the landscape for spot Bitcoin ETFs.
Meanwhile, analysts who asserted that the five days of consecutive outflows of the ETF just before Bitcoin halving had nothing to do with the quadrennial event are mute on the recent bleeding in the market. Regardless, there are high hopes of a market resurgence soon.
Spot Bitcoin ETF Capital Exodus: US Offerings See $51.5M Outflow
