On October 22, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced notable net outflows, concluding a seven-day influx period, with the outflows primarily linked to ARK 21Shares’ ARKB fund.
Data from SoSoValue indicated that the $79.1 million net outflow recorded on October 22 was entirely due to ARK 21Shares’ ARKB, which experienced a significant $134.74 million withdrawal. This represents the largest single-day outflow since the fund’s launch, contrasting sharply with the robust inflows seen in the recent weeks.
The outflows were somewhat balanced by inflows into BlackRock’s IBIT, the largest asset manager in terms of managed assets, which received $42.98 million that same day. Fidelity’s FBTC and VanEck’s HODL also recorded inflows of $8.85 million and $3.82 million, respectively, while other Bitcoin ETFs had no flows on October 22.
Overall trading volume across the 12 Bitcoin ETFs saw a significant decrease, falling to $1.4 billion on October 22 from previous day levels. Despite the recent withdrawals, these funds have cumulatively attracted a net inflow of $21.15 billion since they started.
As Bitcoin ETFs saw net outflows, the price of Bitcoin (BTC) itself remained relatively stable, trading between $66,700 and $67,700 during the past 24 hours. At the time of this report, Bitcoin was priced at $67,022, reflecting a period of price steadiness amid ETF fund flow fluctuations.
In contrast to Bitcoin’s ETF outflows, spot Ethereum ETFs recorded net inflows of $11.94 million on October 22, with BlackRock’s ETHA being the only one to benefit. This marked a reversal from the previous day, where Ethereum ETFs saw $20.8 million in outflows.
At the time of writing, Ethereum (ETH) had decreased by 1.2%, trading at $2,610.
Institutional Investors Bolster Bitcoin ETF Holdings
Institutional interest in U.S. spot Bitcoin ETFs continues to rise, with major investors now comprising around 20% of all spot Bitcoin ETFs traded in the U.S. The growing presence of institutional investors suggests that initial hesitance towards Bitcoin-related funds is waning, as major financial entities like BlackRock and Fidelity lead the inflows into these products.
Experts, including Bloomberg analysts Eric Balchunas and James Seyffart, have noted the gradual adaptation of asset managers to the increasing popularity of crypto ETFs.
European and Asian Investors Rush to Crypto ETFs
While U.S. investors are displaying a heightened interest in Bitcoin ETFs, Europe is witnessing unprecedented investment in spot crypto ETFs.
European investors have invested over $105 billion in these products year-to-date, setting an all-time record. According to Eric Balchunas, this trend is largely attributed to Europe’s comparatively lower market returns, with the SPY ETF in the U.S. rising 24% year-to-date versus only 10% for European markets.
Furthermore, Asian investors are also increasing their investments in U.S.-focused crypto ETFs, contributing to the record inflows seen this year.
In contrast to the robust adoption of spot Bitcoin ETFs in the U.S. and Europe, Japan’s regulators maintain a cautious approach. Japanese authorities have yet to allow the inclusion of crypto assets in investment trusts or ETFs, reflecting a conservative regulatory stance.
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