Spot Bitcoin ETFs See $15M Outflows As Digital Asset Funds Continue To Bleed

Zinger Key Points
  • Despite recent outflows, the total net asset value of Bitcoin spot ETFs remains strong at $52.210 billion.
  • Digital asset investment products saw a fourth consecutive week of outflows, totaling $251 million.

Bitcoin spot exchange-traded funds (ETFs) experienced a total net outflow of $15.6439 million on May 7.

What Happened: The Grayscale Bitcoin Trust GBTC registered a substantial outflow of $28.613 million in a single day, according to data from SoSoValue

Despite these outflows, the total net asset value (NAV) of the Bitcoin BTC/USD spot ETFs remains substantial, recorded at $52.210 billion.

This suggests that while the day-to-day flows can exhibit significant volatility, the overall market for Bitcoin ETFs continues to hold a robust valuation.

The wider market for digital asset investment products is also facing challenges, with net outflows totaling $251 million for the fourth consecutive week, according to Coinshares.

Also Read: Trump’s Potential Return Could Spur Crypto Growth, Standard Chartered Report Suggests

Why It Matters: This downturn marks a concerning trend for digital assets, particularly with the newly issued ETFs in the U.S. which experienced their first significant outflows since inception—totaling $156 million.

Analysts suggest that these outflows were triggered as the market price dipped below the average purchase price of these ETFs since their launch, estimated at $62,200 per Bitcoin.

Regionally, outflows were predominantly concentrated in the U.S., where investors pulled out $504 million.

However, smaller yet significant outflows were also seen in Canada, Switzerland, and Germany, which reported outflows of $9.6 million, $9.8 million, and $7.3 million, respectively.

Contrasting these outflows, Hong Kong’s digital asset market experienced an increase in optimism. The region’s newly launched spot-based Bitcoin and Ethereum ETFs attracted a remarkable $307 million in inflows in their first week.

This marked success demonstrates a stark contrast to the caution seen in Western markets and underscores Asia’s growing role in the global digital assets landscape.

Ethereum, in particular, showed signs of recovery, breaking a seven-week spell of outflows with a positive inflow of $30 million last week.

This indicates a rebound in investor confidence in Ethereum amid the market’s broader uncertainties.

The mixed flows in digital assets underscore the volatile nature of this asset class and highlight the diverse investor sentiments across different regions.

What’s Next: These trends are likely to be a focal topic at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: This Crypto Analyst Remains ‘Turbo Optimistic,’ Claims ‘We’re About 1/3 Through’ The Bull Run

Image: Shutterstock

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