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US spot Bitcoin ETF recorded a net outflow of $430.2 million on Thursday, with Fidelity's FBTC and BlackRock's IBIT being the main contributors.
Funds under BlackRock have seen redemptions for five consecutive trading days, with a total amount exceeding 1 billion US dollars.
The withdrawal of these funds coincided with a 5.5% decline in the NASDAQ index.
As the sell-off in tech stocks spread to the crypto market, US spot Bitcoin exchange-traded funds saw net redemptions of $430.2 million on Thursday, with Fidelity and BlackRock leading the decline.
Grayscale's GBTC saw another outflow of $49.9 million, while Franklin Templeton's EZBC had an outflow of $32.9 million. In the table for Farside, no funds recorded a positive net inflow on Thursday, although several funds showed a net change of zero.
November Bitcoin Low Point
The fluctuations of Fidelity are particularly noticeable: FBTC attracted $236.7 million on Wednesday, but saw nearly $200 million flow out on the following trading day. Meanwhile, even though BlackRock had a positive overall performance on Wednesday, it still experienced a capital outflow of $201.2 million. Since October 30th, there have been five consecutive trading days with capital withdrawals, totaling approximately $1.04 billion.
Since ETF is traded on the stock exchange, investors do not need to transfer their Bitcoin to an encrypted wallet in order to adjust their Bitcoin exposure. This convenience also makes it a convenient place for investors to reduce risks during periods of selling in the stock market. The daily net flow reflects the creation or redemption of shares at the fund level, rather than each individual transaction between investors.
On Thursday, the redemption occurred as the Nasdaq Composite Index fell by 5.5% and the S&P 500 Index dropped by about 4.4%. Chip manufacturers and data center stocks led the decline, due to investors' doubts about the pace of progress in artificial intelligence spending, as well as potential restrictions that could arise after the U.S. mid-term elections.
Bitcoin also gave back some of the gains after the election, with its price falling back to around $76,000, while on Wednesday its trading price was still above $80,000. Previously, short covering had helped drive that upward movement, so the subsequent reversal was even more painful for traders using leverage.
