The U.S. spot Bitcoin ETF sector has experienced an unprecedented capital outflow, reaching a staggering $563.77 million, as reported by SoSo Value.
This outflow marks the sixth consecutive day of fund outflows within the sector and is the highest recorded since the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC).
Among the 10 products affected, the Fidelity Wise Origin Bitcoin Fund (FBTC) bore the brunt, witnessing a substantial outflow of $191.09 million.
There was also a capital outflow from the iShares Bitcoin Trust (IBIT) position managed by BlackRock.
Previously, the fund had experienced a net inflow of funds for an impressive 70 consecutive days.
Nate Geraci, the head of The ETF Store, drew parallels between IBIT’s performance and that of the iShares Gold ETF, highlighting the latter’s loss of over $1 billion in one year.
Bloomberg Intelligence analyst James Seyffart echoed Geraci’s sentiments, emphasizing that such fluctuations are typical for ETFs and do not indicate any instability in their operation.
The net outflow on May 1 surpassed the total losses seen in April, which amounted to $345.88 million.
This significant outflow coincided with a downturn in the price of Bitcoin (BTC), dropping below $57,000 following news of a four-month prison sentence for Binance founder Changpeng Zhao.
