Spot Bitcoin ETFs See Third Straight Week Of Outflows, Australia Considers Approval

Spot Bitcoin ETFs have recorded their third consecutive week of net outflows, totaling $435 million.

The trend coincides with Australian regulators possibly approving spot Bitcoin ETFs.

What Happened: According to a Coinshares report, Grayscale accounted for the majority of the outflows, with $454.1 million in outflows last week alone—the lowest level in nine weeks.

The net flows of some of the biggest spot ETFs looked as follows:

Spot ETF	Net flow
GBTC GBTC	– $440 million
BlackRock (NASDAQ: IBIT)	+ $58 million
Fidelity FBTC	+ $19 million
Ark Invest ARKB	+ $34 million

This comes in the wake of bitcoin’s correction after hitting its latest all-time high of $73,836 on March 14.

James Butterfill, Head of Research at CoinShares, reported that trading volumes in exchange-traded products plunged to $11.8 billion last week, down from $18 billion the week prior.

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New issuers saw $126 million in inflows last week, compared to $254 million the week before. BlackRock's IBIT spot bitcoin ETF ended its 71-day inflow streak, while Fidelity's FBTC FBTC and Valkyrie's BRRR BRRR saw their first daily outflows.

U.S.-based crypto investment funds continued to dominate, with $388 million in weekly outflows. Bitcoin products witnessed the most outflows last week at $423 million. However, year-to-date inflows remain at a record $13.6 billion.

Why It Matters: The recent outflows in crypto investment products come amid a broader market correction. However, the trend also coincides with the increasing adoption of spot bitcoin ETFs. According to Bloomberg, citing people familiar with the matter, the Australian Securities Exchange (ASX) could potentially approve spot-Bitcoin ETFs before the end of 2024, further expanding the global market for these products.

This development comes against the backdrop of the imminent launch of spot Bitcoin ETFs in Hong Kong.

Price Action: At the time of writing, Bitcoin BTC/USD was trading at $X, up/down Y% over the past 24 hours.

What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.