On October 22, spot Bitcoin exchange-traded funds (ETFs) in the United States experienced substantial net outflows, totaling $79.1 million, marking the end of a seven-day inflow streak. This decline was predominantly driven by ARK 21Shares’s ARKB, which reported a staggering exit of $134.74 million, the highest single-day outflow since the ETF’s launch.
According to data from SoSoValue, the entirety of the $79.1 million outflow on that day was attributed to ARK 21Shares’s ARKB. In stark contrast, recent weeks had seen robust inflows into Bitcoin ETFs, underscoring the volatility and shifting sentiments within the market.
Despite these outflows, BlackRock’s IBIT, the largest asset manager in terms of net assets, managed to counterbalance some losses with inflows of $42.98 million. Fidelity’s FBTC and VanEck’s HODL also saw positive movement, with inflows of $8.85 million and $3.82 million, respectively. Notably, the remaining Bitcoin ETFs experienced no net flows on October 22.
The total trading volume across 12 Bitcoin ETFs plummeted to $1.4 billion on October 22, a significant decrease from the previous day’s figures. However, despite the recent outflows, these funds have collectively attracted a net inflow of $21.15 billion since their inception.
While Bitcoin ETFs faced net outflows, the situation was different for spot Ethereum ETFs, which recorded net inflows of $11.94 million on the same day. BlackRock’s ETHA was the sole beneficiary of this positive trend, marking a reversal from the previous day, which saw $20.8 million in outflows from Ethereum ETFs. At the time of writing, Ethereum was trading at $2,610, having declined by 1.2%.
Institutional Interest in Bitcoin ETFs Grows
Institutional adoption of spot Bitcoin ETFs in the U.S. remains robust, with large investors now holding approximately 20% of all U.S.-traded spot Bitcoin ETFs. The increasing presence of institutional investors indicates a growing acceptance of Bitcoin-related funds, with financial giants like BlackRock and Fidelity leading the way in inflows.
Bloomberg analysts Eric Balchunas and James Seyffart have noted a gradual adjustment by asset managers to the rising popularity of crypto ETFs, reflecting a shifting landscape within the investment community.
Global Trends in Crypto ETF Investments
While U.S. investors show increasing interest in Bitcoin ETFs, Europe has witnessed record investment flows into spot crypto ETFs. Year-to-date, European investors have funneled over $105 billion into these products, achieving an all-time high. This trend is largely driven by Europe’s relatively lower market returns, with the SPY ETF in the U.S. up 24% year-to-date, compared to only 10% for European markets.
Moreover, Asian investors are also expanding their exposure to U.S.-focused crypto ETFs, contributing to the overall record inflows observed this year.
In contrast, Japan’s regulatory environment remains conservative, as authorities have yet to allow the inclusion of crypto assets in investment trusts or ETFs, indicating a cautious approach toward cryptocurrency investments.
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