US Bitcoin exchange-traded funds (ETFs) have experienced net outflows for eight consecutive days, leading to over $1 billion in losses from August 27 to September 6. This outflow trend has decreased the total net assets of Bitcoin ETFs to under $50 billion.
Data from SoSoValue indicates that Bitcoin ETFs saw outflows totaling about $1.1 billion since August 27. Fidelity led the redemptions with over $450 million in its FBTC fund. Ark 21Shares' ARKB fund followed with $220 million in outflows, and Bitwise's BITB saw $109 million in outflows. BlackRock's IBIT experienced modest outflows of less than $15 million. Grayscale's GBTC, which converted into an ETF in January, faced $280 million in outflows during the period, contributing to a net loss of over $20 billion since its conversion.
The cumulative net inflow for Bitcoin ETFs has also seen a decline. From a peak of $18.08 billion on August 26, it fell to $16.89 billion at the time of writing. This downturn mirrors a cooling enthusiasm for Bitcoin ETFs, which initially launched with record-breaking success. Most of the decline is tied to Bitcoin's recent price struggles. After peaking over $73,000 in March, Bitcoin's value has fallen to as low as $52,598 in the past day, marking a week-long downward trend of about 10%.
Despite the prevalent outflow narrative, crypto analyst Hitesh argues that the market has largely ignored the inflows to these financial instruments. While Bitcoin ETF netflows have been negative for the past two weeks, they have seen a cumulative positive netflow of $3.5 billion in the last three months. According to Hitesh, this indicates that investors have bought $3.5 billion worth of Bitcoin in the $57,000–$68,000 price range.
Hitesh believes that most of these investments were made at prices above $60,000, and netflow could return to positive once Bitcoin's price reverts to that level again.
