bitcoin spot exchange-traded funds (ETFs) in the U.S. experienced a rough patch with $71.73 million in net outflows on Thursday, extending the downward trend for the third consecutive day. The largest spot bitcoin ETF, BlackRock’s IBIT, observed its first net outflows since May 1, with $13.51 million exiting the fund, as per data from SosoValue. Similarly, Grayscale’s GBTC saw $22.68 million withdrawn, while Fidelity’s FBTC and others also reported outflows.
Ark and 21Shares’ ARKB See Inflows
Despite the overall gloomy scenario, Ark and 21Shares’ ARKB managed to stand out by bucking the trend with net inflows of $5.34 million. While various bitcoin ETFs faced outflows, this particular fund attracted investor interest, highlighting a potential shift in sentiment.
On the trading volume front, the 12 spot bitcoin ETFs collectively recorded a decrease to $1.64 billion on Thursday from $2.18 billion the day before, reflecting the subdued market activity amid the outflow trends.
Spot ethereum ETFs also mirrored the negative sentiment, with $1.77 million in net outflows on Thursday following a brief period of inflows. Among the ethereum funds, the Grayscale ethereum Trust (ETHE) saw significant outflows, with the total trading volume for the nine spot ethereum ETFs declining to $95.91 million on Thursday from $151.57 million the previous day.
Spot Ether ETFs Was Expected to Perform Poorly
Ether spot ETFs faced challenges with net outflows since their U.S. debut last month, contrasting the performance of spot bitcoin ETFs. According to a recent JPMorgan research report, Ether ETFs struggled with around $500 million in net outflows in the initial five weeks post-launch, while bitcoin ETFs attracted inflows exceeding $5 billion.
The weaker performance of Ether ETFs was attributed to factors such as bitcoin’s "first mover advantage," the absence of staking options, and lower liquidity, making Ether ETFs less appealing to institutional investors. Despite expectations, Grayscale’s ethereum Trust (ETHE) experienced $2.5 billion in outflows, surpassing the predicted $1 billion outflows during its transition to a spot ETF.
To counter the outflows, Grayscale introduced a mini ether ETF, which attracted only $200 million in inflows. The report also hinted at growing interest in a combined ETF offering exposure to both bitcoin and Ether as demand for such diversified exposure gains momentum.
The JPMorgan team, under the leadership of Nikolaos Panigirtzoglou, highlighted the steady ownership of spot bitcoin ETFs by institutional and retail investors, with retail investors holding approximately 80% of the assets. This data suggests a consistent interest in bitcoin ETFs among retail investors in the market.
