European Bitcoin ETPs Struggle With $506M Outflows While US ETFs Soar

The situation of Bitcoin exchange-traded products (ETPs) in Europe seems to be not good, reveals a report. The European ETPs have seen regular outflows in each month of 2024. The outflow stood at around $506 million. However, this trend is completely opposite to the inflows recorded in the US market.

Is European ETPs a flop game?

Reports depict that the US spot Bitcoin ETFs have attracted $13.4 billion following the approval of spot Bitcoin ETFs by the Securities and Exchange Commission (SEC). Despite Bitcoin’s 40% rise this year, European Bitcoin ETPs are still struggling.

It added that the other crypto ETPs launched in Europe have managed to attract a net inflow of around $42 million.

Data shows that on May 29, the total net inflow of Bitcoin spot ETFs stood at $28.32 million. Grayscale ETF GBTC saw a single day outflow of $31.065 million, while BlackRock ETF IBIT had an inflow of $24.56 million. The Fidelity ETF FBTC had an inflow of $17.67 million.

Experts had noted a jump in client inquiries about European crypto ETPs after the major launches in the US. However, this is yet to result in high inflows. The competitive fee battle created by the low charges of US Bitcoin ETFs has forced European issuers to reduce their fees to remain competitive. This includes WisdomTree, Invesco, and CoinShares.

Experts have highlighted that there is complexity in understanding Bitcoin fund flows. They noted the scattered market sentiments where some view Bitcoin as an inflation hedge.

What’s next?

VanEck has reportedly disclosed its plans to be more aggressive in marketing its crypto products in Europe. It even reported a small net inflow into the firm’s BTC and Ethereum exchange-traded notes (ETNs) this year. However, it was particularly seen around the time when the US regulators approved the ETF decision.

Its European ETNs have seen net inflows of €8.5 million in 2024. Its assets under management rose to €650 million.

The launch of spot Bitcoin ETF had already pushed Bitcoin and the entire crypto market to hit new highs. BTC went on to hit an all time high of more than $73,500 in March. Bitcoin is trading at an average price of $68,125, at the press time. The biggest crypto is holding a 24 hour trading volume of more than $27.2 billion with a market cap of $1.34 trillion.