U.S. spot bitcoin exchange-traded funds (ETFs) have seen outflows for the fifth consecutive day since April 12, with a reduction totaling $4.3 million during Wednesday’s trading sessions.
Spot Bitcoin ETFs Record 5 Consecutive Day of Outflows; Analyst Declares Cool-Off 'Totally Normal'
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ETF Analyst’s Perspective: Recent Bitcoin ETF Outflows Within Expected Norms
The newly launched spot bitcoin ETFs have been active on the stock market for 99 days, having commenced trading on Jan. 11, 2024. Throughout this period, they have experienced significant trading volumes, marked by substantial inflows from entities such as IBIT and FBTC, as well as notable outflows, particularly from GBTC.
During Thursday’s trading sessions, the market observed another net outflow totaling $4.3 million, following a more substantial outflow of $165 million the previous day. In total, $2.58 billion was exchanged across the 11 U.S.-based spot bitcoin ETFs on April 18, with Blackrock’s IBIT accounting for $1.28 billion of that volume.
As of two days ago, Blackrock’s IBIT managed 272,548.58 BTC. By Friday, April 19, the figures on the website indicated a holding of 273,140.85 BTC, valued at $17.3 billion. This data reveals that, since Wednesday morning, IBIT has absorbed an additional 592.27 BTC from the market.
Grayscale’s Bitcoin Trust (GBTC) has experienced ongoing outflows, diminishing its BTC reserves further. As of Wednesday morning, GBTC possessed 309,871.38 BTC, but by today, the total has decreased to 306,399.09 BTC, indicating a withdrawal of 3,472.29 bitcoins.
Amid these consecutive days of outflows from spot bitcoin ETFs, Bloomberg’s senior ETF analyst Eric Balchunas emphasized on the social media platform X that such a cooldown is entirely typical.
“Some perspective on the ‘it’s so over’ ETF flows lately,” Balchunas wrote on X. “[It is] totally normal for ETF category to cool off after breathtaking pace like this, esp w/ price down 12% in past 5 days (more on that in a minute). As far as the price drop, the ETF analyst blamed the so-called ‘hodler’ class.
Balchunas concluded:
Back to the 12% price drop in 5 days: 1) that’s on the [ bitcoin] natives, the so-called HODLers. So again, if you feel the need to point finger, just remember the call is coming from inside the house. 2) even [with] the price drop [ bitcoin] is up 144% since Blackrock’s filing last June and 47% YTD, which is 10x the return of QQQ = if you are depressed with those returns you should [probably] seek medical help.
What do you think about the five consecutive days of outflows the spot bitcoin ETFs have witnessed? Share your thoughts and opinions about this subject in the comments section below.
