Bitcoin ETFs Are Back? $378 Million In Gains Marks Best Day In Over a Month

After a depressing few weeks of outflows, the tide may be turning for Bitcoin exchange-traded funds (ETFs): On Friday, every single one of the relatively young investment products saw their cash flow turn positive for the first time ever. 

Data from Farside Investors shows that the unanimous turnaround was due to investors plugging more cash into Grayscale’s Bitcoin Trust (GBTC) than was pulled out of it since it became an ETF in January. 

The fund had experienced outflows every day as investors who couldn’t previously redeem shares did so, often in search of competitive funds with lower fees.

But on Friday, GBTC grew by $63 million. This, combined with investors plugging cash into all of the other crypto funds, meant that a total of $378 million entered the collective Bitcoin ETF market that day. 

It represents a remarkable turnaround, as the investment vehicles had their worst day on record earlier last week when they bled over half a billion dollars. And that came after weeks of waning interest from investors in the products. 

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Bitcoin ETFs Shed $563 Million as BlackRock's IBIT Marks First Daily Loss

Spot Bitcoin ETFs in the United States marked their worst day on record Wednesday, notching more than half a billion dollars in net outflows for the first time since their January debut. As Bitcoin’s price fell to its lowest point in two months Wednesday, spot Bitcoin ETFs saw $563 million in net outflows, according to data from CoinGlass—far exceeding a previous record of $326 million in daily net outflows seen in mid-March. The outsized bleed from Bitcoin funds came as the Federal Reserve affi...

The Securities and Exchange Commission in January approved 11 spot Bitcoin ETFs after a decade of applications. The funds allow ordinary investors to buy shares that track the price of the cryptocurrency via brokerage accounts. 

They were immediately and massively popular, with billions of dollars entering the funds. The explosion in ETF popularity is credited with driving up the price of Bitcoin, which in March touched a new all-time high of $73,747, according to CoinGecko.

But the initial hype slowed down last month. Added to that, the Federal Reserve hinted that it was in no hurry to cut interest rates, and turbulence in the Middle East scared investors away from so-called “risk-on” assets like Bitcoin. 

Investors pulling money out of the funds puts downward pressure on the price of Bitcoin, which is now trading not only below its March all-time high but also under the 2021 record of $69,044.

Grayscale Bitcoin ETF Snaps Losing Streak, Pulls In $63 Million

The Grayscale Bitcoin Trust ETF finally drew more new cash than it lost, snapping an 11-week streak with a positive gain of $63 million, according to CoinGlass. GBTC has been seen so many investors cashing out since competing spot Bitcoin ETFs were approved in January, its outflows alone often weighed down the entire nascent space. “Holy crap $GBTC had inflows today,” tweeted Bloomberg ETF analyst Eric Balchunas. “Their 80 day-ish streak is finally over. I had to run my eyes and double check the...

Friday brought a welcome reprieve. Could a sustained optimistic shift in investor sentiment push the coin’s price back up again?

Edited by Ryan Ozawa.