Bitcoin exchange-traded funds (ETFs) in the U.S. have seen significant outflows lately. For eight days straight, these funds lost over $1 billion from August 27 to September 6. This trend has pushed the total net assets of Bitcoin ETFs below $50 billion.
According to SoSoValue, Bitcoin ETFs have experienced steady outflows totaling about $1.1 billion since August 27. Fidelity has led the way, with investors selling more than $450 million in shares from its FBTC fund. Next in line is Ark 21Shares’ ARKB fund, which had over $220 million in outflows. Bitwise’s BITB saw $109 million leave, while BlackRock’s IBIT had smaller outflows of under $15 million.
Grayscale’s GBTC, which became an ETF in January, is also facing major redemptions. It saw $280 million in outflows during this period. Since its conversion, GBTC has lost over $20 billion.
The overall net inflow for these ETFs has dropped too. It fell from a peak of $18.08 billion on August 26 to $16.89 billion at the time of this report. This decline reflects a waning interest in Bitcoin ETFs, which initially launched with great success. Much of this downturn is linked to Bitcoin's recent price struggles.
Bitcoin hit a high of over $73,000 in March but has since fallen to around $52,598 recently. This drop continues a downward trend that has seen its value decrease by about 10% over the past week.
Despite the outflow narrative, crypto analyst Hitesh points out that people are overlooking the inflows into these financial products. He noted that while Bitcoin ETF net flows have been negative for the last two weeks, these products have seen a cumulative positive net flow of $3.5 billion over the past three months.
Hitesh believes this shows that investors have bought $3.5 billion worth of Bitcoin in the $57,000 to $68,000 price range. He added, “Most of these investments were made at prices above $60,000. I think the net flow could turn positive again once Bitcoin's price returns to that level.”