BITCOIN | ETF Flows Fall as Bitcoin (BTC) Wavers Post 2024 Halving

The BTC decline coincides with lower enthusiasm for Spot Bitcoin Exchange-Traded Funds (ETFs) which saw record outflows following the halving event.

The recent drop in Bitcoin’s price might have raised concerns among those who anticipated a surge following the 4th Bitcoin halving.

Since the halving on April 20 2024, Bitcoin’s price has seen a significant decrease (down 7.5%). Around the halving date, Bitcoin was trading at approximately $64,000. Following the halving, there was a brief rally, with Bitcoin reaching above $67,000 on April 22 2024.

However, there was a gradual decline, dropping below $57,000 by May 1 2024, as per CoinGecko data.

At the time of writing, Bitcoin is trading at $59,190, down around 8% over the past week and 10.7% over the past 30 days.

The BTC decline coincides with lower enthusiasm for Spot Bitcoin exchange-traded funds (ETFs) which saw record outflows in the last week.  ETFs in the U.S. experienced a net outflow of $34.4 million on May 2 2024, which was nonetheless a slowdown compared to the previous day’s record outflows.

Grayscale’s GBTC, which has been consistently seeing outflows, was the sole ETF to witness a net decrease in funds amounting to $55 million, as reported by SoSoValue data.

Ark Invest’s ARKB took the lead in daily net inflows, gaining $13 million.

Meanwhile, spot Bitcoin ETFs from Franklin Templeton, Valkyrie, Invesco, and Galaxy Digital recorded smaller net inflows, accumulating a combined total of $6 million.

BlackRock and Fidelity’s bitcoin funds, which hold the second and third positions in terms of total net assets, both registered no flows on that day.

Grayscale was the only ETF with net outflows on May 2 2024. However, the $55 million was sufficient to drag the market to a net outflow of $34.36 million.

The previous day [May 1 2024] had seen a record amount of money ($563.7 million) leaving Bitcoin ETFs, the highest ever recorded in a single day. Fidelity’s FBTC fund, which just started experiencing investor withdrawals the previous week, saw the most significant outflow at $191 million, exceeding that of Grayscale’s GBTC.

It was also the first time BlackRock’s IBIT fund had a net daily outflow on May 1 2024.


According to crypto analytics firm, Kaiko, Spot Bitcoin ETFs have the potential to ‘amplify market downturns,’ the firm said in a report.

“If there is an event that triggers large outflows, ETF issuers will need to liquidate their holdings, which could weaken values in crypto markets,” it stated.




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