On Wednesday, the net outflows for 11 U.S. Bitcoin ETFs reached $120 million. This trend is considered normal by analysts, as eight of the products reported zero flow. Grayscale’s GBTC saw the most outflows, with $130.42 million leaving the converted bitcoin ETF. On the other hand, Ark Invest’s funds were the only ones to receive inflows, totaling around $10 million. Some of the other major funds with zero flows included BlackRock’s IBIT and Bitwise’s BITB, with IBIT ending its 71-day positive streak on Wednesday.
According to Rachael Lucas, a crypto analyst at BTC Markets, days with no inflows are not uncommon and do not necessarily indicate a failure of the product. She suggests that these occurrences are often linked to market performance, geopolitical tensions, and other factors. Joe Caselin, the head of institutional marketing for BIT crypto exchange, shares the same sentiment. He believes that zero flows may indicate a cooling of ETF enthusiasm, but it could also be a result of the gradual integration of fiat currency into the Bitcoin market. As traditional finance slowly merges with crypto, it is expected to see intermittent new inflows.
Bloomberg ETF analyst James Seyffart explains that ETF shares are created or destroyed based on demand and supply, leading to significant differences in their trading volume. This is why the zero flow phenomenon is commonly observed in these products. According to the Block ETF Data Dashboard, the cumulative trading volume of 11 different spot Bitcoin ETFs is approaching $230 billion.
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