On October 22, spot Bitcoin exchange-traded funds (ETFs) in the United States faced substantial net outflows, ending a seven-day streak of inflows. The entirety of the $79.1 million net outflow was attributed to ARK 21Shares’ ARKB, which experienced a remarkable $134.74 million exit, marking the highest single-day outflow since the ETF’s inception. This shift stands in stark contrast to the robust inflows seen in recent weeks.
Despite these outflows, BlackRock’s IBIT, the largest asset manager by net assets, recorded inflows of $42.98 million on the same day. Other funds, including Fidelity’s FBTC and VanEck’s HODL, reported inflows of $8.85 million and $3.82 million, respectively, while the remaining Bitcoin ETFs experienced no flow changes.
The overall trading volume across the 12 Bitcoin ETFs saw a notable decline, dropping to $1.4 billion on October 22, a decrease from the previous day’s levels. Nevertheless, these funds have cumulatively attracted a net inflow of $21.15 billion since their inception.
While Bitcoin ETFs faced outflows, the price of Bitcoin remained stable, consolidating between $66,700 and $67,700 over the previous 24 hours. At the time of reporting, Bitcoin was trading at $67,022, indicating a phase of price stability amidst the fluctuations in ETF fund flows.
In contrast to the Bitcoin ETF landscape, spot Ethereum ETFs saw a net inflow of $11.94 million on October 22, with BlackRock’s ETHA being the sole beneficiary of this shift. This represented a reversal from the previous day, which recorded $20.8 million in outflows from Ethereum ETFs. At the time of writing, Ethereum had declined by 1.2%, trading at $2,610.
Institutional Investors Strengthen Bitcoin ETF Holdings
Institutional adoption of spot Bitcoin ETFs in the U.S. continues to rise, with large investors now holding approximately 20% of all U.S.-traded spot Bitcoin ETFs. The increasing presence of institutional players in the market suggests a diminishing hesitance towards Bitcoin-related funds, as financial giants like BlackRock and Fidelity continue to drive inflows into these products.
Bloomberg analysts Eric Balchunas and James Seyffart have noted the gradual adjustment by asset managers to the growing popularity of crypto ETFs.
European and Asian Investors Flock to Crypto ETFs
While U.S. investors are demonstrating heightened interest in Bitcoin ETFs, Europe has experienced record investment flows into spot crypto ETFs. Year-to-date, European investors have funneled over $105 billion into these products, setting an all-time high. Balchunas attributed this trend to Europe’s comparatively lower market returns; for instance, the SPY ETF in the U.S. has risen by 24% year-to-date, in contrast to just 10% for European markets.
Asian investors are also increasing their exposure to U.S.-focused crypto ETFs, contributing to the record inflows observed this year.
In contrast, Japan’s regulatory environment remains cautious, with authorities yet to permit the inclusion of crypto assets in investment trusts or ETFs, reflecting a more conservative stance towards the cryptocurrency market.
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