May 1st Sees Massive $563.77 Million Exodus from U.S. Bitcoin ETF Market
Breaking records for the sixth consecutive day, the cryptocurrency market saw a significant decline in funds, according to SoSo Value. On May 1st, as the U.S. SEC approved spot Bitcoin ETFs, capital outflows reached an all-time high. Shockingly, 10 products were hit with this wave of outflow, with the Fidelity Wise Origin Bitcoin Fund (FBTC) taking the biggest hit at a staggering $191.09 million.
On May 1, a significant shift occurred in the world of finance as the iShares Bitcoin Trust (IBIT) from BlackRock experienced an outflow of capital for the first time.
This marked a dramatic change from the previous 70 days, during which the fund had consistently seen a net inflow of funds. Nate Geraci, the head of The ETF Store, drew attention to this development by comparing IBIT’s performance to another BlackRock exchange-traded fund, the iShares Gold ETF.
Geraci pointed out that the latter had lost over $1 billion in just one year, highlighting the stark contrast between the two products.
Geraci’s stance received a powerful backing from none other than Bloomberg Intelligence analyst, James Seyffart. He confidently stated that all ETFs function smoothly and that fluctuations are simply part and parcel of these dynamic products.
“Should add — these ETFs are operating smoothly across the board. Inflows and outflows are part of the norm in the life of an ETF.”
James Seyffart, Bloomberg Intelligence analyst
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May 1st was a day of financial turmoil as capital poured out at an alarming rate, surpassing the entire month of April’s losses of a mere $345.88 million.
This sudden and drastic outflow was triggered by the drop in Bitcoin (BTC) prices, plunging below $57,000, and the shocking news of Binance founder Changpeng Zhao’s four-month imprisonment. The market was left reeling from this unexpected turn of events, with investors scrambling to protect their assets.