The Fidelity Wise Origin Bitcoin (FBTC) ETF, a significant player in the spot Bitcoin exchange-traded fund (ETF) market, experienced a setback on Thursday with a first day of net outflows since its launch. It recorded an outflow of almost $23 million, the first of its kind since its introduction in January, impacting other prominent funds in the cryptocurrency market as well. On the same day, other notable names in the cryptocurrency market such as ARK 21Shares’ ARKB, Valkyrie’s BRRR, and Bitwise’s BITB also recorded outflows.
The outflow from the Fidelity Bitcoin ETF came as a surprise to many, indicating a shifting sentiment among investors in the Bitcoin market. The Franklin Templeton’s EZBC was a top performer among the affected funds, attracting a net inflow of $1.87 million. However, Grayscale’s GBTC experienced a substantial outflow of $139 million. Analysts attribute the lack of significant fund inflows to the post-Bitcoin halving environment, highlighting the need for follow-up events focusing attention on Bitcoin in the near term.
In April 17th, there was another significant outflow trend in the Bitcoin exchange-traded funds (ETFs) market, with Grayscale’s Bitcoin Trust (GBTC) witnessing a net outflow of $79.38 million, contributing to its historical net outflow of $16.46 billion. The BlackRock ETF IBIT, on the other hand, saw a net inflow of approximately $25.78 million, showcasing a divergent trend in investor sentiment. The recent data also reveals a decline in BlackRock’s IBIT popularity, with notable turbulence in the ETF market.
Despite initial enthusiasm and heavy investments, the sentiment towards Bitcoin ETFs has cooled off this month, dampening the previous momentum in the Bitcoin market. As Hong Kong prepares to launch Bitcoin and Ether ETFs by the end of April, aiming to challenge the United States’ dominance in the digital asset space, regulatory hurdles and competition with established U.S. financial giants pose significant challenges. Concerns also persist over low public participation in Bitcoin ETFs, highlighting the growing institutional interest in Bitcoin alongside the challenges hindering broader ETF adoption.
At the time of publication, approximately $58.2 million of Bitcoin was liquidated in the past 24 hours, with long positions accounting for $35 million. While the Fidelity Bitcoin ETF contributed to the total inflow on Wednesday, other funds like BlackRock’s IBIT, Invesco’s BTCO, VanEck’s HODL, WisdomTree’s BTCW, and Hashdex’s DEFI reported no inflows on Thursday. Grayscale’s GBTC faced substantial withdrawals, culminating in a net outflow of $120.6 million, the largest since April 17, indicating ongoing outflow trends in the Bitcoin ETF market.
