The spot Bitcoin ETF market has experienced a notable setback with a capital outflow totalling $217 million, marking another downturn for the sector.
According to data from SoSo Value, no funds were moved across five ETFs, including the renowned BlackRock’s iShares Bitcoin Trust ETF (IBIT).
This marks the second consecutive day that the BlackRock fund has failed to attract fresh capital inflows.
In addition to BlackRock’s ETF, outflows were observed in four other prominent ETFs, including those from Grayscale Bitcoin Trust (GBTC), Fidelity Investments and ARK Invest/21Shares.
While IBIT had previously ranked among the top 10 ETFs with a prolonged streak of uninterrupted capital inflows, its fortunes have shifted since the beginning of March 2024, with dwindling capital inflows in the fund.
The average volume of capital inflows into spot Bitcoin ETFs has witnessed a notable slowdown in recent weeks, signalling a cautious approach among institutional players in the market.
Bitwise CEO, Hunter Horsley, remains optimistic, noting that many institutional investors are discreetly preparing for substantial allocations into crypto-based instruments, foreseeing a promising future for the asset class.
Horsley believes that the proliferation of a new breed of digital assets will further enhance the appeal of the crypto market to investors, fueling its growth trajectory.
However, recent market sentiment suggests a waning interest in cryptocurrency-based products among investors.
CoinShares analysts have observed a significant withdrawal of $206 million from crypto products tailored for large professional investors over the past week, signifying the current volatility and uncertainty prevailing in the market.
