Record Outflow from Bitcoin ETFs

On May 1, 2024, Bitcoin Exchange-Traded Funds (ETFs) experienced a historic daily net outflow of $564 million, marking the most significant single-day loss since the introduction of Bitcoin ETFs. This event impacted all ten Bitcoin ETFs, each recording significant outflows.

$BTC #ETF Net Inflow May 1, 2024: -$564M!

• This is the largest single-day net outflow that the 10 #BitcoinETFs have ever experienced.

• All 10 Bitcoin ETFs had single-day outflows, notably with #BlackRock iShares Bitcoin Trust $IBIT seeing the first outflow since its… pic.twitter.com/YJ6xNivYqU

— Spot On Chain (@spotonchain) May 2, 2024

Notably, the BlackRock iShares Bitcoin Trust ($IBIT) witnessed its first outflow since the fund’s inception, highlighting the widespread nature of the withdrawals. This decline is part of a larger trend, with the net inflow remaining negative for six consecutive trading days, the longest streak of its kind.

Market Perspective

Despite the recent setbacks, Bitcoin’s value has significantly increased overall, rising over 22% since the launch of the ETFs and over 35% year-to-date (YTD). According to market commentators, this growth underscores Bitcoin’s volatile nature, which is expected to continue fluctuating in the foreseeable future.

For those cursing (or perhaps rejoicing) #Bitcoin's price today, this is just a quick reminder that it is up over 22% from the launch of the ETFs and over 35% YTD. And #Bitcoin will 'remain' volatile until further notice.

— James Lavish (@jameslavish) May 1, 2024

Data from IntoTheBlock showed that 86% of Bitcoin holders are currently profitable, while 13% are not seeing gains at their purchase price. The currency shows an intense concentration among large holders, with 11% controlling a substantial portion of the market. Additionally, a hefty $7.6 billion in transactions greater than $100K in the past week indicates active high-value trading.