30 days, $6.35B gone – What’s happening with Bitcoin ETFs?

The Spot exchange-traded funds (ETFs) have been experiencing a prolonged period of negative performance. Galaxy Research reports that net outflows of $6.35 billion over the past 30 days have caused U.S. spot Bitcoin [BTC] ETFs to record their worst monthly performance since their inception. Source: Galaxy Research This number is the highest of all 582 rolling 30-day periods that the firm tracks, highlighting a notable exodus of institutional capital from Bitcoin investment products. If the trend continues, such prolonged outflows could lessen the short-term demand support for Bitcoin prices. Needless to say, these outflows usually indicate waning investor sentiment, profit-taking, or a more general shift toward risk-off positioning. Winners and losers of Bitcoin ETF During these 30 days, BlackRock’s IBIT experienced the biggest outflows, totaling $4.51 billion, making it the loser of the month. Morgan Stanley’s MSBT, on the other hand, saw $1.25 billion in inflows after winning in these 30 days. While this happened, Bitcoin’s price dropped from about $76K in early May to $64K at the time of publication. As can be seen, it’s the Bitcoin price that triggered the outflows, which caused the price to move from a bullish to a bearish zone. How other ETFs are performing? While Bitcoin ETFs experienced a difficult period, spot Ethereum [ETH] ETFs also saw $1.149 billion outflows. In the ETH space too, BlackRock’s ETHA saw the largest outflows, while Fidelity’s FETH saw the largest inflows. As for the Solana [SOL] ETF, it received $113.34 million in inflows in these 30 days. Source: SoSo Value On the other hand, the Ripple [XRP] ETF and Hype [HYPE] ETF both recorded inflows during the past month. Source: SoSo Value Franklin Templeton’s new Bitcoin ETF filing However, in the face of this lackluster momentum, Franklin Templeton submitted a proposal to the U.S. Securities and Exchange Commission to establish a new ETF that would turn stock dividends into exposure to Bitcoin. According to a recent filing, the Franklin US Equity Bitcoin DRIP Index ETF is the proposed product that aims to replicate the VettaFi US Large-Cap 500 Bitcoin DRIP Index. Final Summary In these past 30 days, BlackRock’s IBIT experienced the biggest outflows, whereas Morgan Stanley’s MSBT saw the largest inflows. Ethereum ETF followed similar pattern as Bitcoin ETF but Solana ETF, XRP ETF and HYPE ETF took a different route.