Spot Bitcoin ETFs Lose Over $1 Billion in 8-Day Outflow Streak
2024-09-07

US Bitcoin exchange-traded funds (ETFs) have recorded net outflows for eight days in a row, resulting in a loss exceeding $1 billion from August 27 to September 6.
This outflow trend has also contributed to bringing the total net assets of Bitcoin ETFs to under $50 billion.
Why Bitcoin ETFs Are Experiencing Heavy Outflows
Data from SoSoValue shows that Bitcoin ETFs have experienced steady outflows totaling approximately $1.1 billion since August 27. During the period, Fidelity led the redemptions, with investors selling over $450 million worth of shares in its FBTC fund.
Ark 21Shares’ ARKB fund followed with over $220 million in outflows. Bitwise’s BITB saw $109 million in outflows, while BlackRock’s IBIT experienced modest outflows of under $15 million.
Grayscale’s GBTC, which transitioned into an ETF in January, continues to face significant redemptions, with $280 million in outflows during the period. Since its conversion, GBTC has seen a net loss of over $20 billion.
The cumulative net inflow for the ETFs has also declined. From a peak of $18.08 billion on August 26, it had fallen to $16.89 billion at press time.
This downturn reflects a cooling enthusiasm for Bitcoin ETFs, which launched with record-breaking success. Most of this decline is tied to Bitcoin’s recent price struggles.
After reaching a high of over $73,000 in March, Bitcoin has slipped to as low as $52,598 during the past day, continuing a week-long downward trend that saw its value decline by around 10%.
Despite the outflow narrative, crypto analyst Hitesh argues that the market has largely overlooked inflows to these financial instruments. He noted that while Bitcoin ETF netflows have been negative for the past two weeks, the ETF products have seen a cumulative positive netflow of $3.5 billion in the last three months.
According to Hitesh, this indicates that investors have purchased $3.5 billion worth of Bitcoin in the $57,000–$68,000 price range.
“Most of these investments were made at prices above $60,000, and I believe the netflow could return to positive as soon as Bitcoin price gets back to that level again,” he added.