On the first day of May in 2024, there was a significant decrease in the amount of money invested in U.S. spot bitcoin ETFs. This marked the largest single-day outflows since these ETFs were introduced on January 11, 2024.
According to data from coinglass.com, a total of $563.7 million was withdrawn from these funds on Wednesday. The ETF with the highest outflow was Fidelity’s FBTC, which saw over $191 million being taken out. Grayscale’s Bitcoin Trust (GBTC) followed closely behind with withdrawals exceeding $167 million. Blackrock’s IBIT also reported its first negative outflow, reaching close to $37 million.
Before this substantial withdrawal on Wednesday, these ETFs had been experiencing a steady decline over the course of five consecutive days, with outflows totaling $635 million. Ark Invest’s ARKB, Bitwise’s BITB, and Invesco’s BTCO also saw modest declines during this period. On May 1, GBTC held 296,713.90 BTC, but by May 2, this had diminished to 295,126.10 BTC.
The data shows that GBTC divested 1,587.8 BTC since the trading session on Wednesday. Nate Geraci, co-founder of ETF Institute, commented on IBIT’s initial net reduction, stating, “So, Ishares Bitcoin ETF has its first day of outflows ($37M). It has taken in over $15 billion year-to-date. SPDR Gold ETF has $3 billion outflows and gold is up 16% year-to-date.”
Geraci emphasized that this is a normal occurrence for ETFs, as inflows do not always increase in a straight line. However, his remarks did not sit well with Peter Schiff, a gold enthusiast. Schiff responded to Geraci’s post by questioning the relevance of referencing gold ETFs, pointing out that central banks have been buying gold while no industry is buying bitcoin. He argued that gold can rise despite ETF outflows, but bitcoin cannot if ETFs are selling.
What are your thoughts on the significant outflows on Wednesday? Feel free to share your opinions in the comments section below.
