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The last two weeks of April saw a total outflow of $504.30 million. However, on the first day of May, a significant outflow of $563.7 million was observed.
On May 1st, the Bitcoin Exchange Traded Funds experienced a collective outflow of 563.7 million. Fidelity Wise Origin Bitcoin Fund (FBTC) experienced a maximum outflow of 191.1 million.
Out of the top ten Bitcoin ETFs, nine experienced outflows in a single day. Blackrock’s IBIT experienced its first-ever outflow since its launch on January 11, 2024. The only BTC ETF that did not experience any outflow was the Hasdex Bitcoin ETF (DEFI). It had zero flows during the day.
Individual Outflows in a Day
Farside Investment Management Company, based in London and founded in April 2023, regularly reports the inflows and outflows of the top BTC ETFs trading in the USA.
The company also owns the Farside Equity Fund, an actively managed fund that invests in equity worldwide with a long-term investment perspective and a long-term approach. The company has all the required potential in the cryptocurrency ecosystem.
Farside Investments reported the outflows on May 1. The following table shows the outflow of ten BTC ETFs daily.
| Name of the Fund | Ticker of the Fund | Fund Manager | Netflow On May 1, 2024 (in Million USD) | Total Fund Size(in Million USD) |
| Fidelity Wise Origin Bitcoin Fund | FBTC | Franklin Templeton Investments | (191.1) | 7,927.5 |
| Grayscale Bitcoin Trust | GBTC | Grayscale Investments | (167.4) | (17,469.9) |
| ARK 21Shares Bitcoin ETF | ARKB | Ark Investments | (98.1) | 2,124.9 |
| iShares Bitcoin Trust | IBIT | BlackRock, Inc | (36.9) | 15,441.7 |
| Bitwise Bitcoin ETF | BITB | Bitwise Asset Management | (29.0) | 1712.5 |
| Franklin Bitcoin ETF | EZBC | Franklin Templeton Investments | (13.4) | 283.7 |
| Valkyrie Bitcoin Fund | BRRR | Valkyrie Invest | (9.7) | 442.0 |
| VanEck Bitcoin Trust | HODL | HODL Group | (6.5) | 469.8 |
| WisdomTree Bitcoin Fund | BTCW | WisdomTree Asset Management | (6.2) | 58.6 |
| Investco Galaxy Bitcoin ETF | BTCO | Invesco Capital Management LLC | (5.4) | 232.8 |
| Hashdex Bitcoin ETF | DEFI | Hashdex | 0.00 | (2.1) |
Source: The outflows and total amounts are taken from Farside Investments.
The above table lists the BTC ETFs based on the outflow amount in descending order.
What could be the probable reason for significant Outflows in a day?
One of the prominent reasons for the subsequent outflow in the BTC ETF is the decline in the price of Bitcoin by 10.01% in the previous week.
It is a one-week chart for BTC/USD depicting the decline in the overall crypto market. At the same time, the overall global crypto market has experienced a price decline.
A similar trend was observed in other ETF markets as well. Nate Geraci, ETF Store President, highlighted the outflows in the famous gold ETFs in an X post on May 2, 2024.
The post highlighted an outflow in iShares Gold ETF and SPDR Gold ETFs, which have had $1 billion and $3 billion, respectively, despite the increase in gold prices by 16% year-to-date.
So, iShares Bitcoin ETF has first day of outflows ($37mil)…
— Nate Geraci (@NateGeraci) May 2, 2024
Has taken in $15+bil ytd.
For perspective, iShares Gold ETF has $1bil *outflows* this yr.
SPDR Gold ETF has $3bil outflows.
And gold is up 16% ytd.
This is what ETFs do. Inflows don’t go up in straight line.
In his view, the growth in gold prices should attract inflows rather than outflows in gold ETFs. Moreover, for BTC ETFs, he said that this significant outflow is not expected to continue shortly.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
