- Bitcoin ETFs listed in the U.S. experienced significant outflows totaling over $226 million on Thursday, marking the third day of outflows this week and echoing trends observed at the end of April.
- Fidelity’s FBTC led the withdrawals with $106 million, while Grayscale’s GBTC and Ark Invest’s ARKB also saw notable outflows of $62 million and $53 million, respectively.
Investors Pull Out Amid Volatile Market and Economic Indicators
U.S.-listed bitcoin exchange-traded funds (ETFs) witnessed significant outflows totaling more than $226 million on Thursday, continuing a trend that mirrors the end of April. This marks the third consecutive day of outflows this week, highlighting a cautious investor sentiment amidst recent market volatility.
According to preliminary data from SoSoValue, Fidelity’s FBTC saw the largest outflow with $106 million withdrawn, indicating a notable reduction in investor positions. Grayscale’s GBTC followed with $62 million in outflows, and Ark Invest’s ARKB experienced $53 million withdrawn. In contrast, BlackRock’s IBIT was the only ETF to record a net inflow, gaining $18 million.
The outflows on Thursday add to the overall net amount withdrawn from these ETFs, which now totals $564 million over three days. This figure is approximately half of the $1.2 billion that was withdrawn in just six days at the end of April, underscoring a renewed caution among investors.
This week has been particularly tumultuous for both bitcoin and the broader cryptocurrency market. On Wednesday, U.S. inflation data came in lower-than-expected, briefly boosting bitcoin prices to $70,000 from $68,000, before profit-taking sent it back under $67,000. The Federal Reserve’s subsequent meeting also contributed to market uncertainty, with investors weighing the potential impact of the Fed’s future monetary policy decisions.
“The activity in bitcoin ETFs reflects a cautious sentiment among investors, driven by recent economic indicators and market volatility,” said an analyst familiar with the matter. “Investors are closely monitoring inflation trends and central bank policies, which have significant implications for the broader financial markets.”
Despite the recent outflows, there was a brief respite on Wednesday when these U.S.-listed products collectively saw a net inflow of $100 million. However, this was the only day this week to record positive inflows.
As of now, ETFs offered by Valkyrie, Franklin Templeton, Hashdex, and WisdomTree have shown no inflow or outflow activity, indicating a wait-and-see approach among investors.
The significant outflows from U.S.-listed bitcoin ETFs this week underscore the cautious investor sentiment prevailing in the market. With ongoing volatility and economic uncertainty, investors are closely watching for any signs of stabilization before making further investment decisions.
