Investing.com -- Capital flows into spot Bitcoin exchange-traded funds (ETFs) have seen a downturn this week, with outflow of $224 million on Monday, despite the underlying asset reaching a three-week high.
This outflow, reported by J.P. Morgan, interrupts a four-day streak of inflows totaling a net of $570 million into these institutional investment vehicles. The report further examines the cryptocurrency market's dynamics on the 60th trading day of the U.S. spot Bitcoin ETF.
According to the analysis, the daily gross sales excluding Grayscale's Bitcoin Trust (NYSE:GBTC) plummeted to $80 million, marking the lowest figure since the ETF's launch.
This decline is primarily attributed to an increase in GBTC redemptions and a slowdown in investments into "blue chip" cryptocurrency offerings. Specifically, GBTC outflows reached -$304 million, surpassing its daily average of -$263 million since its launch.
Since its transition to a spot ETF in January, GBTC has seen a total outflow of $15.8 billion. This sum represents 48% of the Bitcoin balance it held before converting into a spot ETF.
On the other hand, Bitwise's (NYSE:BITB) emerged as the top asset collector of the day, with $40 million in sales. Meanwhile, combined inflows for Blackrock's iShares Bitcoin Trust (NASDAQ:IBIT) and Fidelity's Fidelity Wise Origin Bitcoin Fund (NYSE:FBTC) amounted to nearly $28 million.
Bloomberg ETF analyst Eric Balchunas provided a broader perspective, noting that IBIT (BlackRock (NYSE:BLK)) and FBTC (Fidelity) have consistently received cash for 59 consecutive days, placing them among the top 20 all-time in terms of inflows.
In related news, James Seyffart reported that Defiance has filed for a 2x leveraged Ethereum futures ETF, trading under the ticker ETHL, and a 2x leveraged Microstrategy (NASDAQ:MSTR) ETF. Additionally, Seyffart noted that the decision on allowing options on spot Bitcoin ETFs has been postponed by the SEC, highlighting that approval from various regulators is required and that the process could be lengthy with no definitive timeline.