Despite the highly anticipated debut of Morgan Stanley's Bitcoin ETF (ticker: MSBT) with the lowest management fee of 0.14%, U.S. spot Bitcoin ETFs extended their outflow streak, losing a net $93.9 million on Wednesday, according to data from CryptoComLearn. The new fund attracted $30.6 million in its first trading day, but it was not enough to offset persistent redemptions from established players.
Bitcoin ETFs: New Capital Fails to Reverse Tide
Morgan Stanley's entry into the Bitcoin ETF space was marked by the lowest fee among all such funds, drawing $30.6 million in inflows on day one. However, the broader picture remained negative. BlackRock's IBIT led the inflow side with $40.38 million, reinforcing its position as a consistent anchor of demand. Combined with MSBT, the inflow side showed clear signs of life — but it was insufficient to balance the selling pressure elsewhere.
Fidelity's FBTC suffered a heavy outflow of $79.12 million, followed by Ark & 21Shares' ARKB which lost $74.70 million. Grayscale's GBTC shed another $11.10 million. Total trading volume reached $3.04 billion, while net assets stood at $91.90 billion. The message was nuanced: demand exists, but it is uneven and quickly neutralized.
Ether ETFs See Net Outflows Despite Strong Inflows in Select Products
Ether ETFs mirrored the pattern, registering a net outflow of $18.6 million. BlackRock's ETHB continued to build momentum, attracting $44.23 million, while 21Shares' TETH added $1.98 million. However, outflows were broader and heavier. Fidelity's FETH led with an outflow of $32.43 million, followed by BlackRock's ETHA at $20.64 million. Grayscale's ETHE and its Ether Mini Trust posted additional outflows of $6.11 million and $5.66 million, respectively. Trading volume amounted to $958.09 million, with net assets at $12.56 billion.
Beyond the major markets, activity remained subdued. XRP ETFs recorded zero trading movement, with net assets unchanged at $950.14 million. Solana ETFs continued their gradual decline, shedding $1.9 million in outflows spread across multiple funds. Grayscale's GSOL led with $867,120 in outflows, followed by Bitwise's BSOL with $779,580 and VanEck's VSOL with $274,100. Solana ETF trading volume was $23.86 million, while net assets closed at $793.91 million.
Market Outlook: Fragmentation Undermines Recovery
The broader takeaway is fragmentation. New capital is entering the market, as seen with MSBT and IBIT, but it is not yet strong enough to compensate for persistent withdrawals from established funds. The market does not lack interest; it lacks alignment. Unless more macro catalysts or institutional allocation willingness emerge, this bifurcation in flows could persist. Morgan Stanley's debut injects fresh blood, but it will take more to reverse the overall trend.