Investor sentiment for Bitcoin ETFs cools as Fidelity sees first outflows Investor sentiment for Bitcoin ETFs cools as Fidelity sees first outflows
BlackRock see back-to-back zero flows as Fidelity’s FBTC records first outflow.
2 min read
Updated: Apr. 27, 2024 at 8:42 am UTC
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Investor interest in spot Bitcoin exchange-traded funds (ETFs) appears to be waning, with outflows totaling $218 million in the past day.
According to data from Farside Investors, BlackRock’s IBIT Bitcoin ETF experienced its second consecutive day of zero flows, while Fidelity’s FBTC saw its first daily net outflow, totaling $23 million.
Other US Bitcoin funds experienced notable daily outflows. Grayscale GBTC fund continued its outflow trend, losing $139.37 million, while $31.34 million exited Ark Invest and 21Shares’ ARKB fund. Additionally, Valkyrie’s fund experienced $20.16 million in outflows, and Bitwise saw a negative flow of $6 million.
In contrast, Franklin Templeton’s EZBC emerged as the only fund with daily net inflows, attracting $1.87 million.
Despite these outflows, net inflows into the ETFs have surpassed $12 billion since their launch in January.
Why are Bitcoin ETFs seeing outflows?
Earlier in the week, James Butterfill, CoinShares’ Head of Research, explained that these outflows signal waning interest among ETP/ETF investors, fueled by speculations about potential delays in rate cuts by the Federal Reserve.
Meanwhile, some market experts noted that the slowdown was necessary for the market to take a breather. Bloomberg Senior ETF analyst Eric Balchunas reported that Fidelity’s FBTC and BlackRock’s IBIT had broken records for the highest net assets within the first 72 days of launch.
He said:
“The league of own-ness of IBIT, FBTC et al shows how overheated it all was, a breather was overdue to be honest.”
Fidelity FBTC and BlackRock IBIT are particularly noteworthy as they are market leaders, collectively managing over $27 billion in assets.
However, there’s anticipation surrounding Morgan Stanley’s reported plan to allow its 15,000 brokers to recommend spot Bitcoin ETFs to clients, which could potentially reignite interest in the market.
UPDATE: Updated headline to clarify outflows.
Mentioned in this article
Bitcoin 
BlackRock 
Fidelity Investments 
Grayscale Investments iShares Bitcoin Trust 
Fidelity Wise Origin Bitcoin Trust 
Grayscale Bitcoin Trust 
Eric Balchunas Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.
The Fidelity Wise Origin Bitcoin Trust (FBTC) is a spot Bitcoin ETF that offers investors exposure to the price of Bitcoin.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.
Eric Balchunas is an American author, ETF analyst, and Senior ETF Analyst at Bloomberg Intelligence.
