On Tuesday, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced $127 million in net outflows, the largest single-day withdrawal since August 6. This outflow interrupted an eight-day stretch of positive inflows, which had totaled $756 million.
The Bitcoin ETF from Ark Invest faced the highest outflow on Tuesday, amounting to $102 million. Additionally, Grayscale’s Bitcoin Trust and Bitwise’s Bitcoin ETF recorded net outflows of $18 million and $7 million, respectively.
After a significant $224 million inflow on Monday, the highest in over a month, BlackRock’s Bitcoin ETF saw no additional inflows. Similarly, Fidelity’s and other Bitcoin ETFs did not experience changes in inflows or outflows.
It appears that a primary factor behind yesterday’s outflows was profit-taking by investors following Bitcoin’s rise above $60,000 earlier this week. Subsequently, Bitcoin has retraced by approximately 10% off that $60,000 mark in light of this news.
The outflows from the ETFs occurred as major financial institutions broadened their bitcoin product offerings. On Tuesday, CME Group introduced a new Bitcoin futures contract targeting retail traders, while Nasdaq filed for regulatory approval for Bitcoin index options.
The continuous progress in creating regulated Bitcoin investment options underscores a growing demand in mainstream markets. Despite the recent ETF outflows, the overall trend indicates an increase in institutional adoption.
