Key Points
- Bitcoin ETFs in the U.S. saw a net outflow of $34.4 million on May 2nd, 2024.
- Despite the outflows, some Bitcoin ETFs, such as Ark Invest’s ARKB, saw substantial inflows.
On May 2nd, 2024, Bitcoin exchange-traded funds (ETFs) in the U.S. experienced a net outflow of $34.4 million.
This is significantly less than the record-breaking $563.7 million outflow observed the previous day.
GBTC and ARKB
Despite this slowdown, it’s important to keep things in perspective.
Grayscale’s GBTC, the longest-standing Bitcoin fund, had outflows of $55 million on the same day, continuing the trend of withdrawals from GBTC.
On the other hand, Ark Invest’s ARKB experienced the highest net inflows on Thursday, attracting a substantial $13 million.
Spot Bitcoin ETFs from Franklin Templeton, Valkyrie, Invesco, and Galaxy Digital also recorded modest inflows, collectively amassing $6 million.
This suggests that some investors still view Bitcoin as a viable investment opportunity.
Other ETFs
Interestingly, BlackRock and Fidelity’s Bitcoin ETFs, which rank second and third in terms of total net assets, saw zero net flows on Thursday.
Analyst James Seyffart from Bloomberg points out that such occurrences are typical within the ETF landscape.
In the Hong Kong ETF market, there was a substantial $248 million increase in assets under management (AUM).
This could be partially driven by some Hong Kong ETFs allowing direct contributions of Bitcoin itself, rather than only relying on market purchases.
Bitcoin’s price rebound also contributes to the favorable outlook.
After declining to $56,500, the leading cryptocurrency rallied to $59,000, indicating underlying market support.
This price surge reflects continued investor confidence in Bitcoin’s long-term potential, even amidst short-term fluctuations.
The broader cryptocurrency market has also shown resilience, with Ethereum exceeding $3,000 and other alternative coins experiencing notable gains.
This upward movement highlights the growing mainstream adoption and belief in the future of the crypto landscape.
BNP Paribas, a European banking giant, invested in BlackRock’s Bitcoin ETF, IBIT, further bolstering investor confidence.
While the bank’s initial investment was a modest $41,684, it signifies growing institutional interest and positive exposure for the cryptocurrency market as a whole.
The recent slowdown in Bitcoin ETF outflows offers a glimmer of hope, but the situation remains unclear.
Bitcoin price momentum and regulatory developments will be crucial in determining the future trajectory of the cryptocurrency market.
