Key facts
- U.S. spot bitcoin ETFs experienced net outflows of $231 million on Monday.
- BlackRock's IBIT saw outflows of $300 million.
- ARKB and GBTC saw inflows of $50 million and $35 million, respectively.
- The outflows coincide with a surge in risk appetite in other markets, particularly tech and semiconductors.
- Asian markets rallied, with the MSCI Asia Pacific index up 1%.
U.S. spot bitcoin exchange-traded funds (ETFs) experienced net outflows totaling $231 million on Monday, according to data from SoSoValue. BlackRock's iShares Bitcoin Trust (IBIT) was the largest contributor to these outflows, shedding $300 million. However, these outflows were partially offset by inflows into other funds, including $50 million into ARK Invest's ARKB and $35 million into Grayscale's GBTC.
The decline in bitcoin ETF demand comes as investor risk appetite surges in other markets, particularly in technology and semiconductor sectors. Wall Street's tech rally extended into Asian markets on Tuesday, with the MSCI Asia Pacific index rising 1% on the year's final trading day. This surge was partly driven by a rebound in semiconductors, which helped the S&P 500 end a five-session losing streak. The MSCI Asia Pacific index is on track for its largest quarterly gain in nearly 17 years.
South Korea's Kospi, which had previously fallen 10% in a single session this month, climbed 2.1% on Tuesday, reinforcing its position as the world's best-performing major stock benchmark this year. Companies like Samsung have seen their stock prices increase by over 100% this quarter, while SK Hynix has gained nearly 240% since April. The Japanese yen also weakened to its lowest level against the U.S. dollar since 1986, suggesting investors are leveraging the yen to fund trades in the AI sector.
Despite these broader market movements, bitcoin ETFs are not participating in this capital rotation. The significant investment in AI infrastructure is drawing capital that might otherwise flow into bitcoin, a trend that has been observed throughout the month.