The U.S. Bitcoin ETF market is experiencing a significant downturn as investors withdraw a staggering $106 million in a single day, according to data from Spotonchain. This has resulted in daily losses of nearly $545 million for Bitcoin ETFs over the course of the week. While institutional players are exiting the market, retail investors are also growing increasingly wary.
To illustrate the impact on individual funds, Fidelity’s FBTC saw outflows of $44.8 million in just one day, while Grayscale’s GBTC and Ark Invest’s ARKB also experienced substantial outflows. This widespread nervousness within the sector is evident.
Despite this negative trend, Franklin Bitcoin ETF (EZBC) managed to buck the trend slightly, recording a small inflow of $1.9 million amidst the heavy selling. This suggests that not all areas of the ETF landscape have suffered a decline in popularity.
The recent heavy outflow of funds coincides with Bitcoin’s price dropping to $63,370, a level not seen since mid-May. This decline is attributed to market volatility and the uncertainty surrounding regulatory clarity in the cryptocurrency space. Altcoins have been hit even harder, experiencing double the plunge as the broader crypto market crashes.
Investors and market observers are closely watching these developments, concerned about the dwindling value of assets managed by Bitcoin ETFs, which now stand at a cumulative $55.547 billion. Net inflows have declined to only $14.56 billion after 112 trading days, indicating a cautious or bearish view among traders. The ongoing withdrawals from Bitcoin ETFs raise questions about the maturity, stability, and long-term track records required for cryptocurrency to be accepted within the traditional financial system.
Tags: BTC, ETF
