Spot Bitcoin exchange-traded funds in the United States recorded significant net outflows on Oct. 22, ending their seven-day inflow streak, with all the outflows attributed to ARK 21Shares’s ARKB.
Data from SoSoValue revealed that the entire $79.1 million net outflow on Oct. 22 stemmed from ARK 21Shares’ ARKB, which saw a substantial $134.74 million exit from the fund. This marks the highest single-day outflow since the ETF’s inception, a sharp contrast to the strong inflows witnessed in recent weeks.
These outflows were partially offset by BlackRock’s IBIT, the largest asset manager in terms of net assets held, which saw inflows of $42.98 million on the same day. Fidelity’s FBTC and VanEck’s HODL also logged inflows of $8.85 million and $3.82 million, respectively. The remaining BTC ETFs saw zero flows on Oct. 22.
Total trading volume across the 12 Bitcoin ETFs saw a significant decline, dropping to $1.4 billion on Oct. 22 from the prior day’s levels. Despite the recent outflows, these funds have collectively attracted a net inflow of $21.15 billion since their inception.
As Bitcoin ETFs witnessed net outflows, Bitcoin (BTC) itself remained range-bound, consolidating between $66,700 and $67,700 over the previous 24 hours. At the time of reporting, Bitcoin was trading at $67,022, indicating a period of price stability despite fluctuations in ETF fund flows.
In contrast to Bitcoin’s ETF outflows, spot Ethereum ETFs recorded net inflows of $11.94 million on Oct. 22, with BlackRock’s ETHA being the sole beneficiary. This marked a reversal from the previous day, which saw $20.8 million in outflows from Ethereum ETFs.
At the time of writing, Ethereum (ETH) had fallen 1.2%, trading at $2,610.
Institutional investors strengthen their Bitcoin ETF holdings
Institutional adoption of spot Bitcoin ETFs in the U.S. continues to grow, with large investors now holding approximately 20% of all U.S.-traded spot Bitcoin ETFs. The increasing institutional presence in the market suggests that early hesitance towards Bitcoin-related funds has diminished, as financial giants like BlackRock and Fidelity continue to lead inflows into these funds.
Experts, including Bloomberg analysts Eric Balchunas and James Seyffart, have highlighted the gradual adjustment by asset managers to the growing popularity of crypto ETFs.
European and Asian investors flock to crypto ETFs
While U.S. investors are showing increased interest in Bitcoin ETFs, Europe has seen record investment flows into spot crypto ETFs.
European investors have funneled over $105 billion into these products year-to-date, marking an all-time high. According to Eric Balchunas, this trend is driven by Europe’s relatively lower market returns, as evidenced by the fact that the SPY ETF in the U.S. is up 24% year-to-date, compared to only 10% for European markets.
Additionally, Asian investors are also increasing their exposure to U.S.-focused crypto ETFs, contributing to the record inflows observed this year.
In contrast to the strong adoption of spot Bitcoin ETFs in the U.S. and Europe, Japan’s regulators continue to take a conservative stance. Japanese authorities have not yet permitted the inclusion of crypto assets in investment trusts or ETFs, reflecting a cautious regulatory environment.
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