Fidelity's Bitcoin ETF welcomes negative cash flow for the first time, others even have no inflow

GhSo...taPv

29 Apr 2024

Many Bitcoin ETFs closed the trading session with "zero" capital flows on April 25.

Nearly 23 million USD was transferred out of the Fidelity Wise Origin Bitcoin (FBTC) fund yesterday (April 25). This is the first time financial giant Fidelity's Bitcoin ETF has received negative cash flow since its listing at the beginning of the year.

But Fidelity is not alone, fund products of other giants also recorded negative cash flow, with total losses estimated at about 217.58 million USD.

Cash flow in and out of Bitcoin spot ETF products (as of April 25, 2024). Source: Farside Investors

According to SosoValue data, the ETFs of Ark Invest, Valkyrie and Bitwise saw $31.34 million, $20.16 million and $5.99 million transferred respectively. The heaviest is Grayscale GBTC, which was "robbed" of 139 million USD.

Bitcoin Spot ETF market data April 25, 2024. Source: SosoValue

Only Franklin Templeton's EZBC had positive capital flow on the day, earning $1.87 million. The remaining funds of BlackRock, Invesco & Galaxy Digital, VanEck, WisdomTree and Hashdex did not have any capital inflows. Even BlackRock's Bitcoin ETF has had its inflow chain broken for the past 71 consecutive days.

However, according to Bloomberg ETF analyst James Seyffart, zero inflow is normal in the ETF market. Hong Song-uk, representative of NH Investment and Securities, had the same opinion:

“Cash flow into ETF will stand still after Bitcoin halving, because there are no events that will focus attention on Bitcoin in the near future.”

Dismal ETF activity halted Bitcoin's short-term gains. The king coin has dropped nearly 10% over the month and is trading around the $64,152 mark per coin.

About $58.2 million in Bitcoin was liquidated in the past 24 hours, $35 million of which came from short positions, according to Coinglass.

For the first time since SEC approval, BlackRock's Bitcoin spot ETF recorded zero cash flow on the last trading day of April 24, breaking the inflow chain of 71 consecutive days.

BlackRock's Bitcoin ETF broke its inflow streak for 71 consecutive days

At the end of the trading day on April 24, US time, the crypto community for the first time witnessed the cash flow into BlackRock's ETF fund being a round zero.

As can be seen on the Farside aggregator, BlackRock's IBIT had no cash flow on the most recent trading day.

Source: Farside

Since the SEC officially “green lighted” the Bitcoin spot ETF on January 11, 2024, the ETFs have gone through 72 trading days. And for the first time, IBIT had zero cash flow, breaking a 71-day streak of positive cash flow.

But with the achievement of 71 consecutive days, IBIT also promptly recorded its name in the top 10 ETFs with the longest positive day streak in history.

However, IBIT still holds the record for the ETF with the highest inflow after the first 72 days of trading.

Meanwhile, only Fidelity's FBTC and ARK-21Shares' ARKB recorded positive inflow, at 5.6 million and 4.2 million USD, respectively.

Dominating the spotlight is still the outflow of money from Grayscale's GBTC fund with negative 130.4 million USD. Thus, at the end of April 24, the cash flow of Bitcoin spot ETFs trading on the US stock exchange was negative 120.6 million USD.

The somewhat "poor" performance of ETF funds is the main reason why BTC price cannot increase. Currently, the king coin is only fluctuating around 64,200 USD, down 4% in the past 24 hours.