Spot Bitcoin ETFs record outflows of $79.1m led by ARK and 21Shares’s ARKB

Spot Bitcoin exchange-traded funds in the US recorded significant net outflows on October 22, ending a seven-day streak of inflows, with all outflows attributed to ARK 21Shares’ ARKB.

Data from SoSoValue revealed that the entire $79.1 million net outflow on October 22 was due to ARK 21Shares’ ARKB, which saw a significant outflow of $134.74 million from the fund. This marks the largest single-day outflow seen since the ETF’s inception and contrasts sharply with the strong inflows witnessed in recent weeks.

These outflows were partially offset by BlackRock’s IBIT, the largest asset manager by net assets held, which saw inflows of $42.98 million on the same day. Fidelity’s FBTC and VanEck’s HODL also recorded inflows of $8.85 million and $3.82 million, respectively. The remaining BTC ETFs saw zero flows on October 22.

Total trading volume across the 12 Bitcoin ETFs dropped significantly to $1.4 billion on October 22, compared to the previous day’s levels. Despite recent outflows, these funds have collectively attracted net inflows of $21.15 billion since inception.

While Bitcoin ETFs witnessed net outflows, Bitcoin (BTC) also remained in the range and consolidated between $66,700 and $67,700 in the previous 24 hours. At the time of reporting, Bitcoin was trading at $67,022, indicating continued price stability despite fluctuations in ETF fund flows.

In contrast to Bitcoin’s ETF outflows, spot Ethereum ETFs recorded net inflows of $11.94 million on October 22, with BlackRock’s ETHA being the sole beneficiary. This marked a reversal from the previous day, which saw $20.8 million in outflows from Ethereum ETFs.

At the time of writing, Ethereum (ETH) was trading at $2,610, down 1.2%.

Institutional investors bolster their Bitcoin ETF holdings

Institutional adoption of spot Bitcoin ETFs in the US continues to grow; large investors currently hold approximately 20% of all spot Bitcoin ETFs traded in the US. The increasing institutional presence in the market suggests that early hesitancy towards Bitcoin-related funds has diminished as financial giants such as BlackRock and Fidelity continue to provide inflows into these funds.

Experts, including Bloomberg analysts Eric Balchunas and James Seyffart, emphasized that asset managers are gradually adapting to the growing popularity of crypto ETFs.

European and Asian investors flock to crypto ETFs

While US investors have shown increased interest in Bitcoin ETFs, Europe has seen record investment flows into spot crypto ETFs.

European investors have poured over $105 billion into these products since the beginning of the year, reaching an all-time high. According to Eric Balchunas, this trend is driven by Europe’s relatively lower market returns, as evidenced by the fact that the SPY ETF in the US is up 24% year-to-date compared to just 10% in European markets.

Additionally, Asian investors are also increasing their exposure to US-focused crypto ETFs, contributing to the record inflows observed this year.

Despite the strong adoption of spot Bitcoin ETFs in the US and Europe, Japan’s regulators continue to maintain a conservative stance. Japanese authorities have not yet allowed crypto assets to be included in investment trusts or ETFs, reflecting a cautious regulatory environment.