Bitcoin Spot ETFs Experience Fifth Day of Net Outflows, but Slowing Pace Offers Hope

Spot Bitcoin exchange-traded funds (ETFs) witnessed a collective net outflow of $51.6 million on Friday, marking the fifth consecutive day of withdrawals. Grayscale ETF (GBTC) alone accounted for a substantial single-day net outflow of $169 million. Conversely, BlackRock ETF (IBIT) and Fidelity ETF (FBTC) experienced modest net inflows of $18.89 million and $18.13 million, respectively, reaching two-day record lows.

Bitcoin Spot ETFs Experience Fifth Day of Net Outflows, but Decelerating Pace Offers Respite

Spot Bitcoin exchange-traded funds (ETFs) witnessed a collective net outflow of $51.6 million on Friday, continuing a five-day streak of redemptions.

The Grayscale Bitcoin Trust (GBTC) led the withdrawals with a substantial single-day net outflow of $169 million. In contrast, the BlackRock iShares Bitcoin ETF (IBIT) and Fidelity Bitcoin ETF (FBTC) registered modest net inflows of $18.89 million and $18.13 million, respectively, both marking two-day record lows.

Despite the ongoing downward trend, a silver lining emerged as the rate of outflows appeared to be decelerating. The most significant decline occurred on Tuesday, when over $323 million exited across all 10 ETFs. Notably, Bitcoin's value dropped to $62,000 on the same day.

However, as the outflow pace slowed, Bitcoin began to recover, gaining nearly 3% today to reach $64,600. Analysts speculate that ETF demand could resurface as the largest cryptocurrency approaches certain support levels.

The upcoming Bitcoin halving event, scheduled for mid-2024, could also spur renewed interest from institutional investors in these ETFs.

The recent activity highlights a strong correlation between Bitcoin ETF movements and the market value of BTC. Earlier in the month, when Bitcoin ETFs saw a record inflow of $1 billion, BTC surged to an all-time high of $73,700.

The latest developments underscore the dynamic relationship between spot Bitcoin ETFs and the broader cryptocurrency market. While outflows have persisted in recent days, the decelerating pace and the potential for renewed demand suggest that the market remains fluid and subject to market conditions.