Spot Bitcoin ETFs Hit Record Five-Day Streak of Net Outflows Amid Weak Inflows

Published: Mar 23, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

Spot Bitcoin exchange-traded funds (ETFs) have reached a new milestone this week. However, it’s not one that crypto traders are likely to enjoy.

For the first time since their inception, these ETFs have experienced five consecutive days of net outflows, surpassing the previous record of a four-day streak set in January of this year.

Key points:

  • Spot Bitcoin ETFs saw a record-breaking five-day streak of net outflows.
  • Total outflows over the past week amounted to $888 million.
  • Grayscale’s GBTC led the outflows with a record-breaking day on Monday, March 18.
  • Blackrock’s IBIT and Fidelity’s FBTC experienced record-low inflows during the week.

According to data from BitMEX Research, the ten spot Bitcoin ETFs collectively saw outflows totaling $888 million over the past week. Grayscale’s GBTC, one of the most prominent players in the market, led the charge with a day of record-breaking outflows on Monday, March 18. This significant exodus of capital from GBTC contributed substantially to the overall outflow figure.

Read more: EU Parliament Committees Approve Ban On Anonymous Crypto Transactions

Bitcoin ETFs also experienced weak inflows

Alongside the strong outflows, the ETFs also experienced notably weak inflows. Blackrock’s IBIT, which currently captures nearly half of the spot bitcoin ETF market, saw record-low inflows of $49.3 million on March 20. However, IBIT received an even lower amount of new capital on Friday, with inflows of just $18.9 million.

Fidelity’s FBTC, the third-largest spot Bitcoin ETF, was not immune to the trend of weak inflows. On Thursday, March 21, FBTC saw record-low inflows of a mere $2.9 million.

The combination of strong outflows and weak inflows paints a picture of a market that is currently experiencing a significant shift in sentiment.

Read more: UN Panel Investigates North Korea’s $750 Million Cryptocurrency Cyberattacks

While spot Bitcoin ETFs have been gaining traction in recent months, this latest development suggests that investors may be reassessing their positions and opting to withdraw their capital from these investment vehicles.

A range of factors, including market conditions, regulatory developments, and overall sentiment towards bitcoin and the broader cryptocurrency market, likely contribute to this shift in investor behavior.

The record outflow also comes at a time when Bitcoin is hovering around $65,000, plunging from its new all time high of $73,750 on March 14.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.