The spot Bitcoin ETF sector has encountered a setback, with a significant capital outflow of $217 million recorded on April 25. SoSo Value reported that funds remained stagnant in five ETFs, including the iShares Bitcoin Trust ETF (IBIT) from BlackRock. This marks the second consecutive day without an inflow of capital for the BlackRock fund.

Alongside the Grayscale Bitcoin Trust ETF (GBTC), outflows were observed in four other ETFs, including those from Fidelity Investments and ARK Invest/21Shares. Despite its recent trend, IBIT has historically ranked among the top 10 ETFs with a prolonged streak of uninterrupted capital inflows. However, since the beginning of March 2024, capital inflows into the fund have shown a decline.

Moreover, the average volume of capital inflows into spot Bitcoin ETFs has notably decelerated in recent weeks. Bitwise CEO Hunter Horsley suggests that numerous institutional players in the market are covertly preparing for substantial injections of funds into crypto-based instruments. Horsley is optimistic that broadening the adoption of this new class of digital assets will further enhance the attractiveness of the crypto market to investors.

However, there has been a waning interest among investors in cryptocurrency-based products lately. CoinShares analysts have highlighted that over the past week, $206 million was withdrawn from crypto products tailored for large professional investors.