Bitcoin ETF Volume At Four Week High, But Net Inflows Turn Negative Again

Activity in the US Bitcoin ETF market has surged once more as Hong Kong prepares to launch its spot Bitcoin ETFs on April 30. On Wednesday, April 24, net outflows of $120 million were recorded for spot Bitcoin ETFs, coinciding with trading volumes reaching a four-week peak.

Bitcoin ETF Volume Nears $4 Billion

According to recent data from on-chain analytics firm Santiment, Bitcoin exchange-traded fund (ETF) volume has surged, hitting its highest daily total in the last four weeks at $3.62 billion. This increase in activity encompasses various ETFs including $GBTC, $IBIT, $FBTC, $ARKB, $BTCO, and $HODL.

Amidst the cryptocurrency markets experiencing unpredictable sideways movement over the past five weeks, analysts view the robust performance of these ETFs as a positive indicator for the broader cryptocurrency sector.

The Net Flows Turn Negative Again

The net flows into spot BTC ETFs have returned to negative territory once again. Yesterday, Bitcoin spot ETFs saw significant movement in net flows, with total net outflows amounting to $121 million, as per data from Farside Investors.

Grayscale’s ETF GBTC experienced the largest net outflow, totaling $130 million in a single day. Conversely, Fidelity’s ETF FBTC emerged as the Bitcoin spot ETF with the highest net inflow, recording $5.61 million in net inflows within the same period. Following closely behind, the ETF ARKB by Ark Invest and 21Shares observed a net inflow of $4.17 million in a single day.

Interestingly, BlackRock’s Bitcoin ETF IBIT recorded zero net inflows for the very first time since inception, and 70 consecutive days of inflows. As of data, BlackRock’s IBIT holds more than $15.4 billion worth of Bitcoin.

On the other hand, HashKey Exchange has declared the successful completion of the inaugural cryptocurrency subscription for Hong Kong Bosera International and HashKey Capital’s Bitcoin spot ETF and Ethereum spot ETF.

Cryptocurrency redemption entails the retention of underlying assets without immediate sale, offering cost and liquidity benefits. Commencing today, Hong Kong cryptocurrency ETFs have initiated fundraising activities and are scheduled for listing on the Hong Kong Stock Exchange come April 30th.

🎉Delighted to announce the successful facilitation of the first physical subscriptions for Bosera HashKey #BTC Spot #ETF & Bosera HashKey #ETH Spot #ETF by HashKey Exchange in collaboration with Bosera International & @HashKey_Capital !

This marks a significant milestone for… pic.twitter.com/MVkP9IX3Kh

— HashKey Exchange (@HashKeyExchange) April 25, 2024

James Seyffart, an ETF analyst at Bloomberg, suggests that Hong Kong might witness a looming fee competition concerning the Bitcoin and Ethereum ETFs. Harvest is leading the charge by offering a complete fee waiver, setting the lowest fee at 0.3% post-waiver.