Fidelity Bitcoin ETF Sees First Outflows Since January Listing
In a surprising turn of events, the Fidelity Wise Origin Bitcoin (FBTC) ETF, a major player in the spot Bitcoin exchange-traded fund (ETF) market, experienced net outflows for the first time since its launch. The ETF saw a significant outflow of nearly $23 million, marking a notable event in the cryptocurrency market.
This trend of outflows had a ripple effect beyond Fidelity Bitcoin ETF, impacting other prominent funds in the cryptocurrency market. ARK 21Shares’ ARKB, Valkyrie’s BRRR, and Bitwise’s BITB also recorded outflows of $31.3 million, $20.2 million, and $6 million, respectively.
The outflow from the Fidelity Bitcoin ETF came as a surprise, signaling a shift in investor sentiment in the Bitcoin market. On the other hand, Franklin Templeton’s EZBC emerged as a top performer among the affected funds, attracting a net inflow of $1.87 million. However, Grayscale’s GBTC experienced a significant drainage of $139 million.
Analysts attribute the lack of significant fund inflows to the post-Bitcoin halving environment. They emphasize the need for follow-up events that focus attention on Bitcoin in the near term.
According to Coinglass data, approximately $58.2 million worth of Bitcoin was liquidated in the past 24 hours, with long positions accounting for $35 million.
Bitcoin outflow trends have been on the rise recently. Grayscale’s Bitcoin Trust (GBTC) witnessed a net outflow of $79.38 million, contributing to its historical net outflow of $16.46 billion. Meanwhile, BlackRock’s ETF IBIT saw a net inflow of approximately $25.78 million, reflecting a divergent trend in investor sentiment.
There has been turbulence in the exchange-traded funds (ETFs) market, with BlackRock’s 71-day streak of continuous inflows coming to an end. Preliminary data from Farside Investors reveals a decline in BlackRock’s IBIT popularity, while Fidelity’s FBTC and ARK 21Shares Bitcoin ETF saw modest inflows.
Despite the initial enthusiasm and heavy investments, the sentiment towards Bitcoin ETFs has cooled off this month. The upcoming launch of Bitcoin and Ether ETFs in Hong Kong aims to challenge the United States’ dominance in the digital asset space, but regulatory hurdles and competition with established U.S. financial giants pose significant challenges.
While Fidelity’s Bitcoin ETF recently secured a record $40 million investment, concerns remain over low public participation in Bitcoin ETFs. This highlights the growing institutional interest in Bitcoin alongside the challenges hindering broader ETF adoption.