BlackRock’s iShares Bitcoin Trust experienced its first-ever outflow day during the trading ending May 1, 2024. According to data from Farside Investors, the spot Bitcoin ETF ended the day with a significant $36.9 million flowing out of its coffers.
The outflows were not limited to BlackRock’s Bitcoin fund alone. Nine other Bitcoin ETFs collectively saw a substantial $526.8 million leaving their coffers, with the Hashdex Bitcoin ETF being the sole exception, recording zero flows, according to the data.
Among the U.S.-based spot Bitcoin ETFs, the Fidelity Wise Origin Bitcoin Fund suffered the largest outflow, with $191.1 million exiting. The Grayscale Bitcoin Trust followed closely behind, experiencing outflows of $167.4 million. This marks the most substantial single outflow day for these ETFs since their launch in January.
However, Nate Geraci, president of ETF Store, highlighted in a social media post on May 2 that the outflows are normal ETF market activities. Geraci pointed to Gold ETFs, claiming that despite their significant outflows, they are still recording market value growth. In his words: “So, iShares Bitcoin ETF has first day of outflows ($37mil). 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.”
RELATED: Gold ETFs Bleed $2.39 Billion Amid Bitcoin ETFs’ Soaring $4.1 Billion Inflows
Bloomberg ETF analyst James Seyffart also shared this perspective. He emphasized that despite the outflows, Bitcoin ETFs are still “operating smoothly across the board” and that “inflows and outflows are part of the norm in the life of an ETF.”
The outflows occurred against the backdrop of a 10.7% decline in Bitcoin’s price over the past week. The token is currently trading at $57,730.42.
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