Preliminary data from Farside Investors in the crypto industry revealed that four new spot Bitcoin ETFs experienced another day of zero flows on April 16. These ETFs included Bitwise (BITB), Invesco Galaxy (BTCO), WisdomTree (BTCW), and Hashdex (DEFI). Additionally, Grayscale’s GBTC and ARK 21Shares’ ARKB saw outflows of $79.4 million and $12.9 million, respectively.
Despite these numbers, Bloomberg ETF analyst James Seyffart stated that this trend was not unusual. He emphasized that on any given day, most ETFs have zero flows, highlighting that this is a common occurrence. Seyffart pointed out that on April 15, out of the 3,500 ETFs in the US, 2,903 had zero flows. Even nine of the newly launched spot Bitcoin ETFs, such as Fidelity (FBTC), experienced zero flows on that day.
Seyffart explained the concept of creation units in the ETF market, noting that shares are produced or destroyed when there is a significant mismatch in supply and demand. Creation units are blocks of shares, varying in size from 5,000 to 50,000 shares for spot Bitcoin ETFs. Market makers intervene only when there is a substantial mismatch, causing significant inflows or outflows of the underlying asset.
On the third consecutive trading day with outflows, a net aggregate of $58 million exited spot Bitcoin ETFs on April 16. This was driven by a minor inflow of $25.8 million for BlackRock (IBIT) and outflows from GBTC and ARKB. Despite a slight recovery in the price of BTC to $64,000 during the Wednesday Asian trading session, the asset dipped in the following hours. This pattern of flows and market behavior is a normal aspect of ETF trading, reflecting the dynamics of supply and demand in the crypto industry.
