A group of recently launched spot bitcoin exchange-traded funds (ETFs) have reported a combined net outflow of $158 million on Wednesday, marking the first instance of negative flows since their trading debut on January 11. The data, compiled by Bloomberg Intelligence analyst James Seyffart, revealed that despite inflows into funds like BlackRock's IBIT and Fidelity's FBTC, they have failed to keep pace with the outflows from Grayscale's GBTC.

According to CoinDesk's analysis of the issuers' websites, the total bitcoin held by all 10 spot bitcoin ETFs, including GBTC, stood at 642,458 on January 24, compared to 660,540 a week earlier. This represents a decline of over 18,000 tokens. Among these funds, the only one experiencing negative flows during the week was GBTC, which witnessed a decrease in its total bitcoin in trust from 592,098 to 523,516.

While both BlackRock's IBIT and Fidelity's FBTC have been leading the way, each holding more than 40,000 bitcoin as of January 24, as opposed to 20,000-25,000 a week earlier, their inflows have slowed down in recent days. BlackRock, for example, added only 1,663 tokens on January 24, which represents its weakest daily addition since opening for business. This number is significantly down from the 8,705 tokens added on January 17. Both funds are nearing the $2 billion mark in assets under management.

However, despite the recent slowdown, the net inflows of the 10 spot bitcoin ETFs since their launch on January 11 remain substantial. Eric Balchunas, a Bloomberg colleague of James Seyffart, estimated a total of $824 million in dollar inflows, which translates to an addition of approximately 17,000-20,000 bitcoin tokens.

It is important to note that day-to-day flows in the cryptocurrency market can be volatile. The decline in bitcoin holdings across various ETFs indicates a changing landscape in investor sentiment towards these products.

As previously reported, CoinDesk, the reputable news outlet covering cryptocurrency, digital assets, and the future of money, was acquired by Bullish group in November 2023. CoinDesk operates as an independent subsidiary with a commitment to maintaining high journalistic standards.

The impact of these negative flows on the overall cryptocurrency market and the future of bitcoin ETFs remains to be seen. Investors and analysts will closely monitor the flow of funds and bitcoin holdings in the coming weeks to gauge the potential impact on market behavior and investor sentiment.