Record ETF outflows continue as BlackRock Bitcoin ETF experiences its first day of withdrawal

Bitcoin exchange-traded funds (ETFs) based in the United States have experienced a significant outflow of funds, with BlackRock’s iShares Bitcoin Trust witnessing its first-ever outflow day. On May 1, Farside Investors reported that $36.9 million flowed out of BlackRock’s Bitcoin fund. Preliminary data from Farside reveals that nine other Bitcoin ETFs experienced a combined outflow of $526.8 million, with the Hashdex Bitcoin ETF being the only one unaffected. The Fidelity Wise Origin Bitcoin Fund had the highest outflow for the day, with $191.1 million, followed by the Grayscale Bitcoin Trust with outflows of $167.4 million. This marks the largest single outflow day for U.S.-based spot Bitcoin ETFs since their launch in January. The ARK 21Shares Bitcoin ETF and Franklin Bitcoin ETF also saw outflows of $98.1 million and $13.4 million, respectively. These outflows coincide with a 10.7% decline in Bitcoin’s value over the past week. However, despite the outflows, ETF Store president Nate Geraci highlighted that the iShares Gold ETF and SPDR Gold ETFs have experienced outflows of $1 billion and $3 billion, respectively, this year. Geraci noted that gold’s value has increased by 16% year-to-date. Bloomberg ETF analyst James Seyffart pointed out that the Bitcoin ETFs are still functioning smoothly and that inflows and outflows are a normal part of an ETF’s lifecycle.