The honeymoon phase might be over for newly launched U.S. spot Bitcoin exchange-traded funds (ETFs). Data from SoSoValue reveals that these 11 ETFs experienced a combined net outflow of $20.45 million on Wednesday, a shift from previous inflows.
Grayscale’s GBTC, the largest Bitcoin ETF by assets under management, led the outflow with $26.99 million. However, Fidelity’s FBTC managed to buck the trend with net inflows of $6.55 million. The remaining nine ETFs, including BlackRock’s IBIT, saw no net flow activity on Wednesday.
This decline in investor interest coincides with a drop in trading volume for these Bitcoin ETFs. Wednesday’s volume sat around $800 million, significantly lower than Tuesday’s $995 million and a far cry from the peak daily volume of $8-10 billion witnessed in March. Despite the recent outflow, these ETFs have still accumulated a net inflow of $14.62 billion since their launch in January.
Meanwhile, the broader crypto market is also facing headwinds. The price of Bitcoin dipped 3% in the last 24 hours to $58,903 at the time of writing, according to The Block. This decline is mirrored across the market, with the overall crypto market capitalization down 3.5%.
The focus for many investors might be shifting towards the upcoming launch of spot Ethereum ETFs. While the U.S. Securities and Exchange Commission (SEC) hasn’t issued final approval yet, it did provide positive signals by greenlighting 19b-4 forms for eight spot Ethereum ETFs on May 23rd. Issuers have since filed amended S-1 registrations with the SEC for review.
Bloomberg ETF analyst James Seyffart, speaking on [X], suggested these spot Ether funds could potentially list as early as next week or by July 15th. The anticipation surrounding Ethereum ETFs might be drawing investor attention away from Bitcoin ETFs for the time being.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
