Bitcoin exchange-traded funds (ETFs) in the United States experienced their biggest daily net outflow ever on Tuesday, with investors withdrawing a staggering $937.78 million amid changing market dynamics.
US Bitcoin ETFs See Record Daily Outflow of $937 Million
The record-breaking outflows came as Bitcoin (BTC ($88,611.16)) fell below $87,000 to a three-month low and dragged the broader crypto market lower, according to data from SoSoValue.
Fidelity and BlackRock Lead ETF Exodus
- Fidelity’s FBTC saw the biggest outflow at $344.65 million.
- BlackRock’s IBIT followed with $164.37 million in outflows.
- The remaining spot BTC ETFs recorded outflows of less than $100 million each.
- US-listed spot Ethereum ETFs also saw net outflows of $50 million.
The sharp decline in ETF inflows is attributed to a decline in the premium on CME-listed Bitcoin futures, which has made cash-and-carry arbitrage transactions much less attractive for institutional investors.
- The annualized one-month basis (premium) on CME Bitcoin futures fell to a nearly two-year low of 4% on Tuesday from 15% in December 2024, according to Velo Data.
- Similarly, the basis in Ethereum futures has also fallen to around 5%.
- With the yield on the US 10-year Treasury bond reaching 4.32%, the risk-free yield from the bonds has become almost equal to that offered by BTC and ETH ($2,466.81), dampening institutional demand.
As ETFs face increasing outflows, analysts suggest new catalysts will be needed to reignite institutional interest in crypto ETFs. The ongoing market slump and changing macroeconomic conditions have added further uncertainty to digital asset investments.
*This is not investment advice.
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