Investor Interest in Spot Bitcoin ETFs Wanes with $218 Million Outflows

Investor interest in spot Bitcoin exchange-traded funds (ETFs) appears to be on the decline, with significant outflows totaling $218 million in the past day. According to data from Farside Investors, several US Bitcoin funds experienced notable daily outflows, including BlackRock’s IBIT Bitcoin ETF and Fidelity’s FBTC.

The outflows are seen as a sign of waning interest among ETP/ETF investors, possibly influenced by speculations about potential delays in rate cuts by the Federal Reserve. Market experts suggest that the slowdown is necessary for the market to take a breather, as some funds had broken records for the highest net assets within the first few months of launch.

Despite the outflows, net inflows into the ETFs have surpassed $12 billion since their launch in January. Fidelity FBTC and BlackRock IBIT, collectively managing over $27 billion in assets, are market leaders in this space. However, there is anticipation surrounding Morgan Stanley’s reported plan to allow its brokers to recommend spot Bitcoin ETFs to clients, which could potentially reignite interest in the market.

It will be interesting to see how the market evolves in the coming days and whether the reported plan by Morgan Stanley will have a significant impact on investor sentiment towards Bitcoin ETFs.