The excitement surrounding spot Bitcoin exchange-traded funds (ETFs) suffered a significant setback in April, coinciding with the decline in the cryptocurrency's price. New U.S. ETFs experienced net outflows of $343.5 million, ending a streak of three-month inflows.
Spot Bitcoin ETFs Witness $344 Million Net Withdrawals in April
ETFs had previously experienced significant inflows, attracting $1.5 billion, $6 billion and $4.6 billion in demand in January, February and March, respectively.
However, overall flows have slowed significantly since peaking at $1.05 billion in daily net inflows on March 12.
This slowdown was accompanied by an 18% decline in Bitcoin's value, which fell from its all-time high of $73,650 on March 14 by the end of April.
April's outflows were led by Grayscale's high-fee GBTC fund, which saw $2.5 billion in outflows during the month. Ark Invest's ARKB experienced monthly net outflows of $86.3 million, while Valkyrie's BRRR also recorded small net outflows of $0.3 million.
Although Fidelity's FBTC and Bitwise's BITB also saw their first daily outflows in April, the remaining funds recorded net inflows last month.
BlackRock's IBIT continued to dominate net inflows into spot bitcoin ETFs, taking in $1.5 billion through April.
This was followed by $556.1 million for Fidelity's FBTC and $125 million for Bitwise's BITB. However, the 71-day inflow streak that propelled IBIT into the top ten ETFs of all time ended on April 23. Since then, the fund has seen zero flows for five consecutive days.
Ark Invest's ARKB was the only spot Bitcoin ETF to record net inflows on Tuesday, adding $3.6 million.
Meanwhile, outflows from Grayscale's GBTC ($93.2 million), Fidelity's FBTC ($35.3 million) and Bitwise's BITB ($34.3 million) were at 161,000 for the day. It contributed to a net outflow of $6 million.
Total net inflows into the combined US spot Bitcoin ETFs were $11.8 billion, falling below $12 billion since trading began Jan. 11.
Daily trading volume for ETFs has also fallen significantly after hitting a record $9.9 billion on March 5, when Bitcoin surpassed its previous cycle peak of around $69,000 for the first time. The trading volume recorded on Tuesday was $2.9 billion.
*This is not investment advice.
