Bitcoin ETF’s Eight-Day Streak Crashes with $127M Outflow Shock

• Grayscale’s net outflows now stand at $19.75 billion, more than half its net assets.
• Nasdaq has applied to list and trade Bitcoin ETF-based options on its exchange.
• A majority of Bitcoin and Ethereum ETFs have seen neutral flows in recent days.

U.S. spot Bitcoin (BTC) exchange-traded funds (ETFs) have ended their inflow streak with a small day of outflows as the crypto markets tumble again.

Bitcoin ETFs

Data provided by SoSoValue reveals that  Bitcoin ETFs have lost their 8-day inflow streak, posting a cumulative net outflow of $127.05 million on Aug. 27, 2024.

The ARK 21Shares Bitcoin ETF (ARKB) was the loss leader, posting $101.97 million in outflows, its worst day since mid-July. ARKB is ranked third for its cumulative net inflows, which currently stand at $2.43 billion.

Outflow champ, the Grayscale Bitcoin Trust (GBTC), ranked as the second-worst performing Bitcoin ETF for the day, posting losses of $18.32 million. The funds’ outflows total $19.75 billion, with net assets at $14.12 billion.

Bitwise’s Bitcoin ETF (BITB) was the fourth-best-performing BTC ETF by cumulative net inflows, posting a modest outflow of $6.76 million.

Modest Volumes, Neutral Flows

It was a day marked by neutral flows, with leading funds such as BlackRock’s iShares Bitcoin Trust (IBIT) and the Fidelity Bitcoin Fund (FBTC) seeing neutral flows. Notably, this is despite the duo, mostly IBIT, soaking up over $900 million of the $1.2 billion in total value traded that day.

It’s worth noting that BTC ETF daily trading volumes have averaged between $1 to $3 billion since April. That said, this average may have declined slightly as volumes don’t push above $2 billion as frequently as they have in the past.

One of the more likely factors influencing this slight decline is the price of BTC itself. Volatility has been the flavor of the month, and today’s price slump below $60,000 could serve to continue this trend.

Bitcoin Index Options

In an Aug. 27 press release, Nasdaq announced  that it intends to offer spot Bitcoin ETF-based options to investors.

As per the release, the firm has filed an application with the U.S. Securities and Exchange Commission (SEC) to list and trade the “Nasdaq Bitcoin Index Option (XBTX)”.

More specifically, XBTX would allow investors to manage positions and hedge BTC investments via options. Nasdaq Vice President and Head of Exchange Business Management Greg Ferrari noted:

“This collaboration further combines the innovative crypto landscape with the resiliency and reliability of traditional securities markets and would mark a significant milestone in expanding the maturation of the digital assets market,”

Outlining their intentions, John Black, Head of Index Options at Nasdaq, explains that they intend to build a “financial architecture around Bitcoin” through indexes, options, and ETFs, which he believes pushes it “over the line” to legitimacy.

About the Author

Eddie Mitchell

Eddie has been writing news and content primarily for crypto news and industry players over the past seven years. With an eye for the bigger picture, Eddie prefers to investigate the broader implications of a story, as well as explore the weird and wonderful world of crypto. He believes blockchain has already changed the world, but observes the space overall with a skeptical and adoring eye.

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