Spot Bitcoin exchange-traded funds in the United States have been hemorrhaging assets over the past few days as institutional investors get rattled.
Institutional investors are getting cold feet as the crypto market correction deepens with spot Bitcoin ETFs in the US reversing a fifteen consecutive trading day trend of inflows.
For the past three trading days, the eleven spot Bitcoin ETFs have shed $1.17 billion as the asset fell more than 14% from its all-time high a week ago.
On Dec. 23, total aggregate outflows totaled $226.5 million, with Fidelity leading the exodus with an outflow of $146 million. Bitwise, Ark 21Shares, Invesco, VanEck, and Grayscale funds also saw outflows on Monday, but BlackRock bucked the trend with an inflow of $31.7 million.
Nevertheless, the total inflow to date for these institutional investment products is $35.8 billion, highlighting the huge demand for Bitcoin-based ETPs.
On Dec. 24, investment firm Swan reported that BlackRock’s iShares Bitcoin ETF is now in the top 35 of all ETFs ever launched, with $53.3 billion in assets under management.
Analysis from CoinShares this week revealed that crypto asset funds saw more than $1 billion in outflows between Dec. 19 and 20.
ETF Store president Nate Geraci saw the humorous side of last week’s Federal Reserve-induced market slump.
Spot Ethereum ETFs bucked the outflow trend with an aggregate inflow of $130.8 million on Dec. 23, following two consecutive trading days of outflows last week, according to preliminary data from Farside Investors.
BlackRock was again the leader of the pack with an $89.5 million inflow for ETHA, followed by Fidelity with $46.4 million in inflows. There was very little activity for the other seven funds.
The BTC correction has deepened to 14.5%, with the asset shedding a further 1.5% on the day, hitting an intraday and monthly low of $92,442 during early trading in Asia on Tuesday.
However, Bitcoin bounced back to reclaim the $94,000 level again at the time of writing, indicating that the decline may be slowing.
Altcoins were faring better at the time of writing, with solid gains of over 4% for Binance Coin (BNB), Avalanche (AVAX), Chainlink (LINK), Sui (SUI), and Hedera (HBAR).