Bitcoin has recovered the $66,000 level despite an impressive four-day run of net outflows totaling $93.85 Million from Bitcoin Spot Exchange-Traded Funds (ETFs). Data from Farside Investors shows that Grayscale ETF GBTC saw a large outflow on yesterday. The net outflow was $358 million. This brings the total historical outflow for GBTC to $13.63 billion.
BlackRock Bitcoin ETF Spot (IBIT) saw an impressive net inflow on yesterday’s trading of $233 millions, which brought IBIT total net flows to $13.32billion. The average is 0.5% lower. BlackRockSince its launch, January 11,, the influx of $271.9 millions has been a major success.
In recent days, other ETFs did not do as well. Fidelity FBTC is the second largest ETF. It has achieved an average daily flow of $141.5 millions, however, yesterday’s inflow was disappointing at $2.5 million.
Ark Invest’s Bitcoin ETF spot, the third largest, saw average inflows totaling $40.9 Million to date. The inflows yesterday were just $2.0M. Bitwise’s BITB ranked as the fourth largest ETF, has accumulated average inflows of $30.7million, and yesterday saw a modest inflow of $12million.
All spot Bitcoin ETFs have seen an average daily flow of $230 millions since the 11th January.
Bitcoin price spikes: Is this a cause for concern?
CryptoQuant CEO Ki Young Ju provided X provides a glimpse into the current situation. “Bitcoin spot ETF netflows are slowing. Demand may rebound if the BTC price approaches critical support levels. New whales, mainly ETF buyers, have a $56K on-chain cost basis. Corrections typically entail a max drawdown of around 30% in bull markets, with a max pain of $51K.”
Crypto analyst WhalePanda highlighted The trend is worth noting “Yesterday’s ETF flows: Another negative day, that’s 4 in a row […] Honestly surprised by how big the outflows are from GBTC. Another $358.8 million and that makes a total of $1.83 billion in just 4 days.” WhalePanda was also seen touching on Genesis’ roleThe company is a good example of this. “in-kind” The large market outflows could be explained by the sale of GBTC for BTC.
Thomas Fahrer is the founder of Apollo offered Bullish perspectives “I know it is forbidden to post anything bullish on #Bitcoin ETFs right now, but I’m gonna do it anyway. GBTC selling is temporary. Financial advisors and institutions have barely begun buying. $100 BILLION inflows are coming next 1-2 years. Patience.”
Charles Edwards founder of Capriole Investments commented Grayscale has a lot to say about the situation. “Grayscale Bitcoin ETF holdings falling off a cliff. Down 50%, or about $20B at current BTC price. We must be days/weeks away from them slashing fees to stop the bleeding. Blackrock holdings expected to overtake Grayscale before the Halving!”
The last couple of days were disappointing. However, the fact that outflows (almost exclusively) are from Grayscale’s GBTCWhile other investors hold on to their Bitcoin investment, Grayscale’s outflows will eventually stop. It is only a question of time until Grayscale stops its outflows, but even small inflows (without Grayscale outflows) can have a significant impact.
BTC was trading at $66,203 as of press time.
![Bitcoin price](https://fxruhanahmed.com/2/wp-content/uploads/2024/03/Bitcoin-Price-Reclaims-66000-Despite-4-Day-ETF-Outflow-Streak.png)
Featured image created with DALL·E, chart from TradingView.com
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