Bitcoin exchange-traded funds (ETFs) are experiencing the largest daily outflows since their launch!

Bitcoin exchange-traded funds (ETFs) experienced their largest outflows in a single day during 2024, with investors withdrawing approximately $671.9 million. This intense selling coincided with a sharp decline in the price of Bitcoin, which dropped below the $100,000 mark, leading to a widespread liquidation wave in the market.

According to data from Farside Investors, the largest outflow came from Grayscale's GBTC fund, which suffered losses of up to $208.6 million. Similarly, both the Grayscale Bitcoin Mini Trust and ARK's ARKB fund recorded outflows of $188.6 million and $108.35 million, respectively.

Notable other outflows included several funds, such as Grayscale's GBTC, which saw outflows of $87.86 million, Bitwise's BITB fund with $43.61 million, and Invesco Galaxy's BTCO fund, which experienced outflows of $25.97 million. Meanwhile, VanEck's HODL fund recorded outflows of $10.91 million, while Valkyrie's BRRR fund saw outflows of $8.19 million.

Amidst this wave of selling, there were notable exceptions, as WisdomTree's BTCW fund attracted modest inflows of $2.05 million. At the same time, BlackRock's IBIT funds and some other Bitcoin ETFs did not experience any significant changes in flows during the day.

Despite the outflows, trading activity in Bitcoin exchange-traded funds surged significantly. The total trading volume reached $6.31 billion, marking a substantial increase from $5.86 billion the previous day, reflecting continued strong interest in the market despite significant volatility.

These outflows are part of a broader market downturn, where liquidations exceeded $1 billion within 24 hours. Data from CoinGlass indicated that the largest part of these liquidations, approximately $856.66 million, was allocated to long positions, suggesting that bullish traders were caught off guard by the sharp market fluctuations and sudden price declines.

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