On Thursday, U.S. spot Bitcoin exchange-traded funds (ETFs) saw $71.73 million in net outflows, marking the third consecutive day of declines.
Among the affected funds, BlackRock’s IBIT, the largest spot Bitcoin ETF by net assets, recorded its first net outflows since May 1, with $13.51 million exiting the fund, according to SosoValue data.
Other major Bitcoin ETFs also faced withdrawals. Grayscale’s GBTC saw $22.68 million in outflows, while Fidelity’s FBTC experienced $31.11 million in net exits. Additionally, Bitwise’s BITB and Valkyrie’s BRRR reported outflows of $8.09 million and $1.68 million, respectively.
In contrast, Ark and 21Shares’ ARKB managed to defy the trend, reporting net inflows of $5.34 million.
Trading volumes for the 12 spot Bitcoin ETFs dropped to $1.64 billion on Thursday, a decrease from $2.18 billion the previous day.
Spot Ethereum ETFs Follow Negative Trend
Spot Ethereum ETFs mirrored the downturn in the market, with $1.77 million in net outflows on Thursday after a brief period of inflows. The Grayscale Ethereum Trust (ETHE) led the outflows with $5.35 million, although this was partially offset by $3.57 million in inflows into the Grayscale Ethereum Mini Trust (ETH). The remaining seven Ethereum funds saw no notable movement.
The total trading volume for the nine spot Ethereum ETFs fell to $95.91 million on Thursday, down from $151.57 million on Wednesday. The net outflows in Ethereum ETFs followed a net inflow of $5.8 million the previous day, marking the first positive movement after nine consecutive days of outflows.
Both Bitcoin and Ethereum prices experienced minor declines, with Bitcoin slipping 0.3% to around $58,984 and Ethereum dropping 0.29% to approximately $2,516.
Ether ETFs Struggle Post-Launch
Since their U.S. launch last month, spot Ether ETFs have struggled compared to their Bitcoin counterparts, according to a JPMorgan research report released on Wednesday. Ether ETFs began trading on July 23, approximately six months after the launch of Bitcoin funds.
In the first five weeks post-launch, Ether ETFs faced about $500 million in net outflows, while Bitcoin ETFs saw inflows exceeding $5 billion. JPMorgan analysts attribute the weaker performance of Ether ETFs to Bitcoin’s “first mover advantage,” a lack of staking options, and lower liquidity, which made Ether ETFs less appealing to institutional investors.
Notably, Grayscale’s Ethereum Trust (ETHE) experienced $2.5 billion in outflows, significantly higher than JPMorgan’s anticipated $1 billion. In response, Grayscale launched a mini Ether ETF, which attracted only $200 million in inflows.
JPMorgan’s team, led by Nikolaos Panigirtzoglou, suggested that the weaker demand for Ether ETFs compared to Bitcoin could be driving interest in a combined ETF offering exposure to both assets. The report also noted that institutional and retail ownership of spot Bitcoin ETFs remained largely stable from the first quarter, with retail investors holding approximately 80% of the funds.