Recent Outflows from Bitcoin ETFs Signal Market Trends
U.S. spot-listed Bitcoin (BTC) exchange-traded funds (ETFs) have experienced a significant decline in investor interest, with three consecutive days of outflows totaling a staggering $494 million. The most notable outflow occurred on Wednesday, amounting to $251 million. This decline was particularly evident in BlackRock’s iShares Trust (IBIT), which recorded an outflow of $22.1 million. Meanwhile, the Fidelity Wise Origin Bitcoin Fund (FBTC) faced the largest individual outflow, totaling $102 million, as reported by Farside data.
These outflows have coincided with a period of low trading volume in the ETF market. On Wednesday, the total trading volume across these ETFs was a mere $2.58 billion. Specifically, IBIT logged less than $2 billion in trading volume, positioning it as the tenth most traded ETF in the U.S. According to Coinglass data, IBIT typically ranks among the top five most actively traded ETFs during periods of Bitcoin price surges or heightened market momentum.
The recent lack of demand is further illustrated by a filing from Goldman Sachs regarding Bitcoin ETFs, which highlights a growing disinterest in establishing new net long positions. This trend suggests that many investors are approaching these ETFs primarily as trading instruments rather than long-term investment vehicles.
As for Bitcoin itself, it is currently trading at approximately $96,000, finding itself within a trading range that spans from $90,000 to its all-time high of $109,000. This trading pattern has been consistent since mid-November, reflecting a cautious market sentiment amidst fluctuating investor confidence.
