The U.S. Bitcoin Spot ETF sector closed the year with a notable outflow of $348.10 million on December 31, 2023. This decline indicates a significant pullback in investor engagement within the market, with IBIT (managed by BlackRock) and ARKB contributing the most to the exits.
IBIT led the way with a staggering outflow of $99.05 million, translating to approximately 1.13K BTC. The fund saw a trading volume of $1.68 billion, indicating continued high activity despite the outflow. It ended the day priced at $49.65, reflecting a minor loss of 0.36% and maintained a management fee of 0.25%. Notably, IBIT now boasts net assets totaling $67.29 billion.
Following IBIT, ARKB recorded an exit of $76.53 million, losing around 876.52 BTC. This outflow highlights the ETF”s vulnerability amid changing market conditions. Meanwhile, the Grayscale Bitcoin Trust (GBTC) reported a $69.09 million outflow, bringing its total cumulative net outflow to $25.25 billion, making it the only ETF in the sector with a negative total inflow. GBTC closed the day at $68.36, also down 0.36%, and carries a 1.50% fee.
In addition, FBTC from Fidelity saw a $66.58 million outflow, equating to 762.56 BTC, while trading at a competitive price of $76.23, down 0.42%. With no management fee, FBTC remains an attractive option for investors. As the second-largest ETF by assets, it holds $17.61 billion.
Smaller ETFs also displayed mixed activity. The HODL ETF experienced a minor outflow of $6.79 million, while BTCO and BRRR did not show any inflow or outflow. The total assets across all Bitcoin ETFs stood at $113.29 billion, which represents 6.47% of Bitcoin”s overall market capitalization.
The cumulative net inflow for the U.S. Bitcoin Spot ETF market remains strong at $56.61 billion, despite the recent daily outflow. The total value traded within the sector reached $2.83 billion, indicating active trading participation.
This year-end report underscores the volatile nature of Bitcoin ETFs, highlighting how swiftly market sentiment can shift, influencing both inflows and outflows. Investors and market observers will be keen to analyze how these trends evolve in the new year.
