Bitcoin ETF Outflow Sees 9 Days of Market Negativity in August

Key Points:

• Spot Bitcoin ETFs saw net outflows of $175.53 million on August 30, marking the ninth day of outflows this month.
• Bitcoin ETF trading volumes have decreased since their peak in early March, and some funds have recorded zero flows recently.
• The Bitcoin ETF outflows raise questions about the future of Bitcoin price fluctuations.

Farside Investors, an investment firm out of London, reported continued spot Bitcoin exchange-traded funds outflows of $175.53 million on August 30.

Read more: Bitcoin Inflows Surge to $543 Million After Powell’s Rate Comments

Bitcoin ETF Outflows Continued When Markets Are Negative

This marks the ninth day in August when Bitcoin ETF outflows were recorded, against the usually positive trend seen in previous months.

Among the Bitcoin ETFs, Grayscale’s Bitcoin Trust led the outflow with $70.2 million, followed closely by ARK’s ARKB with an outflow of $65 million, Bitwise’s BITB with $16.4 million, Fidelity’s FBTC with $12.9 million, and Invesco’s BTCO with $11.1 million.

In sharp contrast, BlackRock’s iShares Bitcoin Trust registered no net inflows or outflows on the same day. The fund has only had outflows twice since the end of January when it was launched, with the most recent being on August 29.

Market Uncertainty Grows with Persistence of Bitcoin ETF Outflows

This recent slump in trading volumes for Bitcoin ETFs comes after its peak in early March, where some of such ETFs have even recorded zero flows since the beginning of this week.

Among the several ETFs, Grayscale’s GBTC seems to be the worst-hit one in regard to the highest Bitcoin ETF outflows. The question that everyone wants an answer to right now is: Where do spot Bitcoin ETFs go from here, and will the trend keep sliding further down?

Market analysts maintain that the recent Bitcoin ETF outflows may be a result of a range of factors, including changes in the price action of Bitcoin, shifting expectations in the market, and regulatory dynamics that change with time.