The cryptocurrency market has seen a notable shift in investor sentiment, as the US spot bitcoin exchange-traded funds (ETFs) reported a staggering $226.21 million in net outflows on Thursday. This trend was primarily driven by Fidelity’s FBTC, which witnessed its second-largest net outflow since its debut, amounting to $106 million.
The Outflow Breakdown
- Grayscale’s GBTC reported net outflows of $62 million.
- Ark Invest and 21Shares’ ARKB saw $53 million move out from the fund.
- Bitwise and VanEck’s funds both saw net outflows worth around $10 million.
- Invesco and Galaxy Digital’s BTCO experienced $3 million in net outflows.
The Lone Inflow
The only net inflow on Thursday came from BlackRock’s IBIT, which is the largest spot bitcoin fund in terms of net asset value. IBIT drew in $18 million.
The Big Picture
Since their January listing, the 11 spot bitcoin ETFs in the US have accumulated a total net inflow of $15.30 billion. However, the recent outflows suggest a shift in investor sentiment, potentially due to market conditions or regulatory uncertainty.
Regulatory Developments
In related news, Securities and Exchange Commission (SEC) Chair Gary Gensler stated that the regulatory agency may provide its decision on the spot ether funds “over the course of” this summer. This announcement follows the SEC’s preliminary approval for spot ether ETF applications last month.
“Analysts at JPMorgan said in May that they expect spot ether funds to start trading well before November this year.”
However, some industry experts, such as Bitfinex analyst Jag Kooner, believe that institutional investors may find the spot ether funds unappealing due to the elimination of staking components from the ETFs, citing regulatory uncertainty.
As the cryptocurrency market continues to evolve, these developments in the spot bitcoin and ether ETF landscape will undoubtedly shape the future of institutional investment in the digital asset space.
