US Bitcoin ETFs face $1.2B in withdrawals, marking the longest outflow stretch since their launch. Despite this, Bloomberg’s Eric Balchunas remains bullish on the future of spot Bitcoin
US Bitcoin ETFs face $1.2B in withdrawals, marking the longest outflow stretch since their launch. Despite this, Bloomberg’s Eric Balchunas remains bullish on the future of spot Bitcoin ETFs.
Summary:
In a period marked by significant investor withdrawals from US Bitcoin exchange-traded funds (ETFs), Bloomberg analyst Eric Balchunas has maintained a cautiously optimistic outlook. Recent data through September 6, 2024, reveals that nearly $1.2 billion has been pulled from these ETFs over an eight-day span, marking the longest stretch of daily net outflows since the funds’ debut.
US Bitcoin exchange-traded funds (ETFs) have recently faced their longest stretch of daily net outflows since their inception earlier this year. Data through September 6, 2024, reveals that investors have withdrawn nearly $1.2 billion from these ETFs over an eight-day period. Despite this significant capital outflow, Bloomberg analyst Eric Balchunas remains bullish on the future of spot Bitcoin ETFs.
In a recent discussion on X, Balchunas underscored his positive stance on spot Bitcoin ETFs, emphasizing that the recent outflows, though notable, constitute only a small fraction of the total assets under management (AUM).
Balchunas pointed out that the $1.2 billion withdrawal is relatively minor compared to the overall AUM of these funds. He views such outflows as a routine part of the investment cycle rather than a red flag.
Balchunas highlighted that the recent $287 million outflow represents just 0.5% of the total AUM, which he deems manageable. He also addressed concerns that these outflows might signal broader issues within the Bitcoin ETFs market. According to Balchunas, fluctuations in asset prices are typical, and the current outflows should be seen in the context of the overall positive trend.
Notably, despite recent withdrawals, Bitcoin ETFs have experienced substantial net inflows year-to-date, totaling $16.8 billion. This figure is approaching the higher end of Balchunas’s earlier forecasts and reflects ongoing investor confidence in cryptocurrency ETFs.
Further analysis reveals detailed fund performance amidst the outflows. On September 5, 2024, 12 spot Bitcoin ETFs recorded outflows of $211.15 million, a surge of over six times compared to the previous day’s outflows of $37.29 million, according to data from SoSoValue. Fidelity’s FBTC led the outflows with $149.5 million, followed by Biwise’s BITB, Grayscale’s GBTC, and Grayscale Bitcoin Mini Trust with $30 million, $23.2 million, and $8.4 million, respectively.
Notably, Fidelity’s FBTC experienced the largest outflows over the last week, totaling $374 million, surpassing Grayscale’s GBTC outflows of $227 million. Meanwhile, BlackRock’s IBIT, the largest spot BTC fund with over $20.91 billion in total inflows, remained neutral on the day, along with eight other BTC ETFs. Total daily trading volume for the 12 spot Bitcoin ETFs fell to $1.35 billion on September 5, down from $1.41 billion the previous day.
