US Spot Bitcoin $94,821.2 As exchange-traded funds (ETFs) hit their one-year anniversary, they experienced significant outflows totaling more than half a billion dollars. BlackRock’s IBIT and Fidelity’s FBTC funds stood out in the latest trading volume of US$3.5bn.
IBIT Leads in Transaction Volume, FBTC Leads in Outflows
ETFs have seen heavy outflows since their first trading day on January 11, 2024. More than half a billion dollars were withdrawn from funds as of Wednesday, the most recent data available. 24-hour trading volume increased by US$3.5 billion.
BlackRock’s IBIT fund broke the record with trading volume of US$2.53 billion, while Fidelity’s FBTC fund followed with US$406.84 million.
Bitcoin Doubled Its Price in Its First ETF Year
The ETFs saw a net inflow of US$655.3 million on their first day of trading, led by Bitwise. While the Bitcoin price that day was in the range of US$46-47k, it is currently trading at US$92,690. Bitcoin’s performance has remained strong despite ETF outflows.
All ETFs reported net outflows compared to balanced inflows in the prior year period. While FBTC had the largest net outflow of US$258.7 million, IBIT ranked second with an outflow of US$124 million.
The fact that IBIT has the largest amount of BTC shows that there is more capital left compared to FBTC’s trading volume. Bitcoin’s future performance is expected to be shaped by the flows of ETFs.
These developments in the first year of Bitcoin ETFs can be considered an important step in the maturation process of the market. The flow direction of funds is closely monitored as it reflects investors’ confidence and strategies in the cryptocurrency market. It is expected that next year will be a period when this trend will continue or new dynamics will emerge.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
