Bitcoin ETF Outflows Shock Market, BlackRock Defies Trend
Attention, crypto investors! After a solid run of inflows, the US spot Bitcoin ETF market just hit a bump. On May 29th, these funds recorded their first day of joint outflows in over two weeks, marking a notable shift in market sentiment. But there’s a twist: BlackRock’s fund continued its impressive streak, bucking the overall trend.
Understanding the Recent Spot Bitcoin ETF Activity
On May 29, US Spot Bitcoin ETF products collectively saw a net outflow of $347 million. This ended a 10-trading-day streak of inflows, a pattern last observed on May 13. It was also the largest single day of net outflows since March 11, when $396 million left the funds. This outflow coincided with Bitcoin’s price dropping more than 3.5% during the day.
Here’s a quick look at some key fund movements on that day:
- Fidelity Wise Origin Bitcoin Fund (FBTC): Largest net outflow at $166 million.
- Grayscale Bitcoin Trust (GBTC): Saw an outflow of $107.5 million.
- Other funds with outflows included Bitwise, Ark 21Shares, Invesco, Franklin Templeton, and VanEck.
- Funds from CoinShares, WisdomTree, and Grayscale’s mini trust recorded no flows.
BlackRock IBIT Stands Against the Tide
Amidst the widespread ETF Outflows, BlackRock IBIT distinguished itself. BlackRock’s iShares Bitcoin Trust recorded a net inflow of $125 million on May 29. This extended its consecutive trading day inflow streak to 34 days, a run that started after its last outflow on April 9.
This consistent performance means BlackRock’s ETF has attracted nearly $4 billion in inflows over the past two weeks alone. Its total inflow figure is now close to $49 billion, with assets under management exceeding $70 billion. This continued accumulation by BlackRock suggests strong institutional or retail demand persists for this specific product, even when the broader market sees withdrawals.
Comparing Crypto ETF Flows: Bitcoin vs. Ether
Interestingly, while Bitcoin ETFs faced outflows, spot Ether ETFs showed resilience. According to Farside Investors, these funds recorded a net inflow of $92 million on May 29. This extends their inflow streak to 10 consecutive trading days, with the last outflow occurring on May 15.
BlackRock’s Ethereum Trust (ETHA) also played a significant role here, capturing over $50 million of those inflows. This brings its total inflows since its July 2024 launch to $4.5 billion. The differing flow patterns between Bitcoin and Ether ETFs highlight varied investor sentiment or strategic positioning across the Crypto ETF landscape.
What Do These ETF Flows Tell Us?
The recent ETF Outflows in Bitcoin products, excluding BlackRock, could indicate several factors. It might reflect short-term profit-taking after a period of inflows, reaction to the recent price dip, or a reallocation of capital. However, BlackRock’s sustained inflow suggests a segment of the market continues to accumulate Bitcoin via this specific vehicle, perhaps driven by long-term strategies or specific investor mandates.
ETF Store President Nate Geraci observed that over the past 5 weeks, more than $9 billion entered spot BTC ETFs, while nearly $3 billion exited gold ETFs. This comparison underscores a potential ongoing shift in investor preference from traditional safe havens like gold towards digital assets like Bitcoin, despite recent volatility.
Summary: A Nuanced Market Picture
The latest data reveals a complex picture for US spot Bitcoin ETFs. While the overall market saw significant outflows, breaking a positive streak, BlackRock’s fund remained a beacon of inflows. This divergence suggests underlying demand for Bitcoin through certain channels remains robust, even as other investors take profits or re-evaluate positions. The contrasting inflows into Ether ETFs further illustrate the dynamic nature of the crypto investment landscape.
