The bloom may be coming off the rose for spot bitcoin(BTC) exchange-traded funds (ETFs) in the US, with the market experiencing its biggest day of net outflows on Thursday since May.
Data from SoSoValue shows that all but one of the 11 US-listed spot bitcoin ETFs saw investor money head for the exits, totaling a net outflow of $226.21 million. The biggest exodus came from Fidelity’s FBTC, which saw its second-largest outflow ever at $106 million. Grayscale’s GBTC also experienced significant outflows of $62 million, while Ark Invest and 21Shares’ ARKB saw $53 million leave the fund.
However, it wasn’t all doom and gloom. BlackRock’s iShares Bitcoin(BTC)Trust (IBIT), the largest spot bitcoin ETF by net asset value, defied the trend and actually drew in $18 million on Thursday. Despite the outflows, year-to-date, these 11 ETFs have still seen a net inflow of a healthy $15.30 billion.
This shift in investor sentiment coincides with a slight dip in the price of bitcoin, which is currently down 1.48% in the last 24 hours to $66,704 (as of June 14th, 2024).
Looking ahead, the focus for many crypto enthusiasts is turning towards the potential launch of spot ether ETFs. The Securities and Exchange Commission (SEC) Chair Gary Gensler indicated on Thursday that a decision on these applications could be coming “over the course of” this summer. This follows the preliminary approval granted last month, with issuers now waiting for final registration greenlights.
Analysts at JPMorgan predict spot ether ETFs to be trading by November, potentially attracting a significant chunk of investment currently flowing into bitcoin ETFs, according to Bitfinex analyst Jag Kooner. However, there are concerns that the lack of staking options in these ETFs due to regulatory uncertainty might make them unattractive to institutional investors, as noted by crypto derivatives trader Gordon Grant.
Whether spot ether ETFs can live up to the hype and take a bite out of bitcoin’s dominance remains to be seen. But one thing’s for sure: the next few months will be interesting for the cryptocurrency ETF market.
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.
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