Grayscale's Bitcoin ETF Takes Another Hit, Records Largest Outflows

US spot Bitcoin ETFs (exchange-traded funds) recorded $81.36 million net outflows yesterday to bring an end to a two-day positive flow streak

US spot Bitcoin ETFs (exchange-traded funds) recorded $81.36 million net outflows yesterday, putting an end to a two-day positive flow streak as Bitwise says around 66% of institutional investors either increased or maintained their BTC ETF positions in Q2.

Only two funds, BlackRock’s IBIT and Franklin’s EZBC, recorded net inflows on Aug. 14. IBIT saw its reserves grow by $2.68 million, while EZBC saw net inflows of $3.42 million, according to data from SosoValue.

Grayscale’s Bitcoin ETF suffers another blow, records largest outflows

Grayscale’s GBTC took another hit and suffered $56.87 million outflows yesterday. Fidelity’s FBTC registered the second largest outflows for the day after $18.05 million left the fund. During the same trading session, Ark and 21Shares’ ARKB and Bitwise’s BITB also saw outflows of $6.77 million and $5.78 million, respectively. The remaining 6 funds recorded no flows.

Trading volume for spot Bitcoin ETFs reached $1.3 billion yesterday. This was a slight uptick compared to the $1.18 billion trading activity recorded the day before.

Bitcoin had a volatile trading session with regards to price. After managing to break above $61K and reach an intraday high of $61,687.76 yesterday, BTC saw its price plunge 3% in an hour to below $57K. It has since recovered slightly to trade at $58,144.79 as of 2:45 a.m. EST.

Institutional investors increase BTC ETF holdings

Around 66% of institutional investors either held or increased their exposure to spot Bitcoin ETFs, Bitwise found. “Institutional investors continued to adopt bitcoin ETFs in Q2. The trend is intact,” Bitwise Chief Investment Officer Matt Hougan said in an Aug. 15 X post.

A few initial thoughts after reviewing the Q2 Bitcoin 13-F filings:

1) The Institutions Are Still Coming; Total Filings Are Up: I count 1,924 holder<>ETF pairs across all 10 ETFs, up from 1,479 in Q1. That's a 30% increase; not bad considering prices fell in Q2.

Of course, this…

— Matt Hougan (@Matt_Hougan) August 14, 2024

He added that large corporations have mostly “diamond hands.”