Total net outflows from 11 U.S. spot Bitcoin ETFs reached $120 million on Wednesday, while eight products recorded zero flows, a trend analysts consider normal.
Grayscale’s GBTC saw $130.42 million withdrawn from converted Bitcoin ETFs, while funds from Fidelity and Ark Invest were the only beneficiaries of inflows totaling approximately $10 million. Among the eight funds with no flows were BlackRock’s IBIT and Bitwise’s BITB, with IBIT ending its 71st consecutive positive day on Wednesday.
According to Rachael Lucas, cryptocurrency analyst at BTC Markets, days with zero inflows are common and do not necessarily indicate a product failure. She suggests that such events often coincide with market performance and geopolitical tensions, highlighting complexities beyond ETF flows.
Joe Caselin, head of institutional marketing at BIT cryptocurrency exchange, echoes this sentiment, saying that while it is not uncommon for ETFs to have zero flows, it could mean interest in them is cooling off. He emphasizes the gradual integration of fiat currencies into the Bitcoin narrative, expecting new inflows to occur intermittently as traditional finance becomes increasingly integrated with cryptocurrencies.
Bloomberg ETF analyst James Seyffart previously explained that ETF shares are created or destroyed in units, a process that occurs due to significant imbalances in supply and demand. This phenomenon explains why zero flow is commonly observed in such products.
The Block ETF Data Dashboard reports that cumulative trading volume across all 11 spot Bitcoin ETFs is approaching $230 billion.
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