Bitcoin ETF outflows continue as the markets find their footing.
(Photo by Spencer Platt/Getty Images)
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Key Takeaways
Bitcoin ETFs have seen over $300 million in net outflows since the start of the week.
Whales are buying discounted BTC as smaller wallets fail to HODL through the market decline.
Ethereum ETF flows have outperformed Bitcoin ETFs for the second day.
U.S. Spot Bitcoin (BTC) exchange-traded funds (ETFs) have seen another day of net outflows as markets attempt to recover from the recent shakeout.
Although the exits are persistent, some analysis suggests that the crypto ETF complex is looking particularly robust at this point in time. Recent Bitcoin whale buying activity also suggests that appetite remains strong.
Bitcoin ETFs
As per SoSoValue, Bitcoin ETFs have had a particularly lackluster week so far. Most funds posted net neutral flows, and four funds recorded outflows totaling $148.65 million on Aug. 6, 2024.
Bitcoin ETF flows. Source: SoSoValue
Fidelity Wise Origin Bitcoin Fund (FBTC) was the loss leader for the day, posting $64.48 million in net outflows, marking its seventh day of consecutive outflows. As anticipated, the Grayscale Bitcoin Trust (GBTC) saw $32.18 million in exits, bringing its total net outflows to $19.16 billion.
ARK 21Shares Bitcoin ETF (ARKB) saw outflows of $28.88 million, as did the Franklin Bitcoin ETF (EZBC) with $23.01 million in net outflows. Despite yesterday’s extraordinary $5.24 billion in total value traded, Bitcoin ETF appetite is certainly waning.
Poor Performance?
Naturally, the recent and consistent outflow figures will look bearish to most people. However, things may be going better than expected. Experts such as Bloomberg ETF analyst Eric Balchunas had expected outflow figures to be even more substantial. Describing the exits as “peanuts,” he explains:
“That said, it’s one day, I could see some more outflows this week. I was thinking a couple billion would leave, maybe 5%, which means 95% hung tough which would be strong. So far tho looking much stronger than that. Even I’ve been surprised by the HODL ability of the boomers and equally surprised by the weakness of the natives.”
Institutional investors appear to be slowing down as the crypto and stock markets return to some semblance of stability. Meanwhile, ultra-wealthy investors have been undeterred by volatility. If anything, they’re increasing their BTC holdings.
Whales Move In
On Aug. 5, Bitcoin ETFs recorded net outflows to the tune of $168 million, with only a handful of funds seeing any positive inflows. Despite the price of BTC sitting below the $60,000 price tag, predictions of another institutional feeding frenzy have fallen short of expectations.
As the institutions exit, it appears the whales are moving in. As per Santiment, wallets holding between 1,000 and 10,000 Bitcoins confidently increased their holdings. Furthermore, wallets holding 100,000 to 1 million BTC tokens massively increased their holdings and have remained in HODL mode ever since.
Source: Santiment
Oddly, wallets containing 10,000 to 100,000 Bitcoins began offloading their holdings in late July. Meanwhile, wallets with smaller 0.1 to 1 BTC demonstrated some strength ahead of the market shakeout, but weaker hands have prevailed recently. Wallets holding 0.01 to 0.1 BTC also saw sizeable sell-offs, indicating that BTC may no longer be an ideal asset for retail investors.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
