Bitcoin ETF Breaks Outflow Streaks

YEREVAN ( — In a notable market shift, U.S.-based spot Bitcoin exchange-traded funds (ETFs) reversed a week-long streak of net outflows. According to data compiled by SoSoValue, several prominent Bitcoin ETFs saw significant inflows on June 25 and 26, 2024.

ETF Flow and Market Data Overview
Source: SoSoValue Indices (SSI)
ETF Flow and Market Data Overview. Source: SoSoValue Indices (SSI)

Major Inflows for Fidelity’s FBTC and Bitwise’s BITB

Fidelity’s FBTC led the market with impressive inflows. On June 25, the fund attracted $49 million. The trend continued on June 26, with an additional $18.6 million. Bitwise’s BITB also reported $15.2 million in inflows on June 25.

VanEck’s HODL also saw net inflows of $4 million on June 25 and $3.4 million on June 26. These figures highlight the growing interest in Bitcoin ETFs after a period of notable outflows. Investors seem to be regaining confidence in these funds, leading to a healthier market outlook.

Recovery Among Bitcoin ETFs

Despite the positive trend for some funds, others saw declines. Grayscale’s GBTC experienced net outflows of $30.3 million on June 25. This fund continues to face challenges in attracting new investments.

ARK Invest and 21Shares’ ARKB recorded $6.2 million in net outflows on June 25. This indicates that while some ETFs are recovering, others are still struggling. BlackRock’s IBIT, the largest spot Bitcoin ETF by net asset value, saw no net flows on both June 25 and 26. However, it maintained a significant daily trading volume of $1.1 billion, showing stability in a volatile market.

Bitcoin ETF Flow Table (June 2024)
Source: Farside Investors
Bitcoin ETF Flow Table (June 2024). Source: Farside Investors

Bitcoin ETFs Rebound with $14.4B Inflows Amid Volatility

The total net inflows for the 11 spot Bitcoin ETFs since their debut amount to more than $14.4 billion. Moreover, this recovery follows several days of outflows, reflecting a cautious yet optimistic market sentiment. The inflows are a positive sign for the market, suggesting that investors are returning after a period of uncertainty.

The Bitcoin ETF market saw fluctuations, with prices stabilizing around $60,750 to $61,000. This period of volatility can be linked to broader market sentiments and specific events like the announcement of Mt. Gox repayments in July 2024. These repayments could impact market dynamics, contributing to the observed volatility.

Bitcoin Price Fluctuations (June 21-27, 2024)
Source: CoinMarketCap
Bitcoin Price Fluctuations (June 21-27, 2024). Source: CoinMarketCap

Expert Insights on Bitcoin ETF Movements

Nate Geraci, president of ETF Store, emphasized that fluctuations in ETF flows are a normal part of market dynamics. He compared these movements to gold ETFs, which have also seen outflows despite price increases.

James Seyffart, a leading ETF analyst, noted the significant discounts to the value of the underlying asset. He explained that such dislocations, while concerning, are part of the market’s response to rapid changes.

Above all, despite recent volatility, Bitcoin ETFs have shown resilience. Notably, the inflows into key funds and the overall market sentiment point towards a potential recovery phase.

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