Bitcoin ETF

Gold

On May 1, the U.S. spot Bitcoin ETF sector recorded a record capital outflow of $563.77 million. 
According to SoSo Value, the sector’s fund outflow continued for the sixth straight day. Capital outflows on May 1 reached their highest point since the spot Bitcoin ETFs were approved by the U.S. <a href="https://crypto.news/tag/SEC/" target="_blank" rel="">SEC</a>. 
Capital outflow&nbsp;was recorded&nbsp;for&nbsp;10&nbsp;products, with&nbsp;the hardest&nbsp;hit coming against the Fidelity Wise Origin Bitcoin Fund (<a href="https://crypto.news/tag/FBTC/" target="_blank" rel="">FBTC</a>)&nbsp;at&nbsp;$191.09 million. 
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May 1 is also the first day when an outflow of capital&nbsp;was recorded&nbsp;on the iShares Bitcoin Trust (IBIT) position from <a href="https://crypto.news/tag/BlackRock/" target="_blank" rel="">BlackRock</a>. Before this, the fund recorded a net inflow of funds for 70 consecutive days. 
The head of The ETF Store, Nate Geraci, compared&nbsp;IBIT’s&nbsp;performance with another <a href="https://crypto.news/tag/BlackRock/" target="_blank" rel="">BlackRock</a> exchange-traded fund, the iShares Gold <a href="https://crypto.news/tag/etf/" target="_blank" rel="">ETF</a>. Geraci emphasized that the second product lost more than $1 billion&nbsp;in one year. 
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 So, iShares Bitcoin ETF has first day of outflows ($37mil)… Has taken in $15+bil ytd. For perspective, iShares Gold ETF has $1bil *outflows* this yr. SPDR Gold ETF has $3bil outflows. And gold is up 16% ytd. This is what ETFs do. Inflows don’t go up in straight line.— Nate Geraci (@NateGeraci) <a href="https://twitter.com/NateGeraci/status/1785849570552852579?ref_src=twsrc%5Etfw" target="_blank" rel="">May 2, 2024</a>
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Geraci’s stance was&nbsp;<a href="https://twitter.com/JSeyff/status/1785843582420541666" target="_blank" rel="">supported</a> by Bloomberg Intelligence analyst James Seyffart.&nbsp;According to Seyffart, all ETFs operate stably,&nbsp;and&nbsp;such fluctuations are the norm for such products. 
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 “Should add — these ETFs are operating smoothly across the board. Inflows and outflows are part of the norm in the life of an ETF.” <cite>James Seyffart, Bloomberg Intelligence analyst</cite>
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The net outflow of capital on May 1 exceeded the losses of funds for the entire April which only saw $345.88 million in outflows.&nbsp; 
The massive outflow&nbsp;happened against&nbsp;a drawdown in the Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="">BTC</a>) price below $57,000 following a four-month prison sentence for <a href="https://crypto.news/tag/binance/" target="_blank" rel="">Binance</a> founder <a href="https://crypto.news/tag/Changpeng-Zhao/" target="_blank" rel="">Changpeng Zhao</a>. 
 You might also like: <a href="https://crypto.news/crypto-community-reacts-to-changpeng-zhaos-4-month-sentence/" rel=""> Crypto community reacts to Changpeng Zhao’s 4-month sentence </a>

Spot Bitcoin ETFs reach record $563m outflows

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