TL;DR
Bitcoin ETFs in the U.S. experienced a record outflow of funds on Wednesday, with BlackRock’s IBIT registering its first loss since January.
The combined net outflow of the ETFs totaled $563.7 million, marking May 1 as the day with the largest outflow of funds since the launch of these financial products.
BTC lost 10.44% of its value during April, and investors may be opting to secure gains or minimize losses.
Bitcoin ETFs in the United States had a tough day on Wednesday, recording a record net outflow of funds, with BlackRock’s IBIT suffering its first loss since its launch in January. The massive outflow of funds occurred amid a decline in the price of BTC, which lost 8.32% in the last week. On Wednesday, it reached a two-month low of $57,608, according to CoinMarketCap data.
The combined net outflow of the ETFs totaled $563.7 million, making May 1 the day with the largest outflow of funds since the launch of these financial products. Fidelity’s FBTC led the day’s outflows with $191.1 million, closely followed by Grayscale’s GBTC, with $167.4 million in outflows.
Other ETFs also experienced similar losses. Ark Invest’s ARKB suffered the third-largest outflow of the day, with $98.1 million, while several other funds, such as Franklin Templeton’s EZBC, Valkyrie’s BRRR, VanEck’s HODL, WisdomTree’s BTCW, and Invesco’s BTCO, also recorded significant net outflows.
Investors Flee Bitcoin and Market Volatility
The only ETF that did not record net outflows during the day was Hashdex’s DEFI. This situation appears to reflect a lack of confidence or interest among institutional investors amid high volatility in the crypto market.
The decline in the price of Bitcoin in April, marking its worst monthly performance since November 2022, likely contributed to the decision of institutional investors to begin withdrawing their funds. BTC lost 10.44%, and investors may be opting to secure gains or minimize losses.
The massive outflow of funds from Bitcoin ETFs in the United States suggests a risk aversion among institutional investors amid uncertainty and volatility. We will have to wait a few days or weeks and closely monitor the evolution of BTC to see the true impact of its volatility.