• Bitcoin ETFs experienced outflows totaling $635 million over five consecutive trading days ending on April 30th
• Fidelity’s FBTC Bitcoin ETF saw its largest single-day withdrawal of $353 million since its launch
• Grayscale’s GBTC continued to bear the brunt of the selling with a further $92.2 million outflow
The crypto market has seen a significant downturn in recent weeks. This bearish sentiment has led to major outflows from Bitcoin exchange-traded funds (ETFs).
Fidelity’s Bitcoin ETF Sees Largest Single-Day Redemption
According to data from Farside Investors, Bitcoin ETFs saw another outflow of $616 million on April 30th. This marks a record fifth consecutive day of outflows for Bitcoin ETFs, totaling $635 million over the 5-day period.
Fidelity’s FBTC saw its largest single-day redemption of $353 million since launching. Despite this, FBTC still has total inflows of $811.86 billion. Bitwise’s BITB saw an outflow of $343 million on April 30th, bringing its total inflows down to $1.7415 billion.
In contrast, BlackRock’s IBIT has seen no inflows or outflows over the past five days, with total holdings remaining steady at $1.54786 billion.
Grayscale’s GBTC Continues to See Major Selling
Grayscale’s GBTC continued to bear the brunt of the selling, with another $932 million outflow. This brings its total outflows to $1.73025 billion.
Overall, Bitcoin ETF inflows have now dropped to $1.17873 billion according to the Farside data.
Market Downturn Sparks Investor Caution
The significant outflows from Bitcoin ETFs signal increased investor caution amidst the ongoing crypto market downturn. With Bitcoin falling below key support levels, investors appear to be reducing exposure and waiting on the sidelines.
Major products like GBTC and FBTC had seen huge inflows in 2021 and early 2022 as market sentiment was bullish. The tide has now turned, with traders uncertain of Bitcoin’s next move.
Outflows do not necessarily mean investors are selling their Bitcoin holdings entirely. Rather, it indicates a pause in additional buying as investors evaluate market conditions. Bitcoin ETFs had seen rapid growth as an easy exposure point to crypto for institutional investors.
The coming weeks will determine if outflows continue or if sentiment improves, bringing investors back into Bitcoin ETFs. For now, the products endure major redemptions amidst bearish crypto market price action.
