Despite a continuous four-day streak of net outflows from Bitcoin spot exchange-traded funds (ETFs) totaling $93.85 million, Bitcoin’s price rose impressively to reclaim the $66,000 mark. According to data from Farside Investors, the Grayscale ETF GBTC experienced a significant outflow yesterday, with a single-day net outflow of $358 million, culminating in a historic net outflow of $13.63 billion just for the GBTC.
In stark contrast, BlackRock’s Bitcoin Spot ETF (IBIT) witnessed a sizable net inflow of $233 million yesterday, bringing IBIT’s total net inflow to $13.32 billion. This is a little below average for Black stonewhich has recorded inflows of US$271.9 million since its launch on January 11.
Other ETFs have not performed as well in recent days. Fidelity’s FBTC, the second-largest ETF, has so far achieved an average daily inflow of $141.5 million, but recorded a disappointing $2.5 million inflows yesterday.
The third largest, Ark Invest’s spot Bitcoin ETF, has seen average inflows of $40.9 million to date, with yesterday’s inflows at just $2.0 million. Bitwise’s BITB, which ranks fourth, has accumulated $30.7 million on average, with a modest $12 million in inflows yesterday.
Overall, all spot Bitcoin ETFs, including GBTC, have seen an average of approximately $230 million in daily inflows since January 11.
![Bitcoin Price Regains $66,000 Despite 4-Day ETF Exit Streak 1 Bitcoin ETF Flows](https://thegurumedia.com/wp-content/uploads/2024/03/GJPt5wIX0AAJalE.jpg)
Bitcoin price stagnates: reason for concern?
CryptoQuant CEO Ki Young Ju offered insights into the situation via X, stating: “Bitcoin spot ETF network flows are slowing. Demand could recover if BTC price approaches critical support levels. New whales, mainly ETF buyers, have an on-chain cost basis of $56,000. Corrections typically involve a maximum drawdown of about 30% in bull markets, with a maximum loss of $51,000.”
WhalePanda Crypto Analyst highlighted the trend, noting: “Yesterday’s ETF flows: another negative day, that’s four days in a row (…) Honestly surprised by the size of the GBTC outflows. Another $358.8 million and that makes a total of $1.83 billion in just 4 days.” WhalePanda also addressed The role of Genesissuggesting that the company’s “in-kind” sale of GBTC shares for BTC could explain the large outflows without corresponding market dumps.
Thomas Fahrer, founder of Apollo, offered an optimistic outlook: “I know it’s forbidden to post anything optimistic about #Bitcoin ETFs right now, but I’m going to do it anyway. The GBTC sale is temporary. Financial advisors and institutions have barely started buying. Inflows of US$100 BILLION will occur in the next 1-2 years. Patience.”
Charles Edwards, founder of Capriole Investments, commented on the Grayscale situation, “Shares in Grayscale Bitcoin ETF Falling Off a Cliff. Drop of 50%, or about $20 billion in the current price of BTC. We must be days/weeks away from them reducing rates to stop the bleeding. Blackrock holdings expected to surpass Grayscale before half!”
Although the last few days have been quite disappointing, it is worth noting that the outflows are (almost) exclusively coming from GBTC in grayscale, while other investors maintain their investments in Bitcoin. This means it is only a matter of time before the outflows from Grayscale stop, and even small inflows from other ETFs have a big impact (without the outflows).
At press time, BTC traded at $66,203.
![Bitcoin Price Regains $66,000 Despite 4-Day ETF Exit Streak 2 Bitcoin Price](https://thegurumedia.com/wp-content/uploads/2024/03/BTCUSD_2024-03-22_09-00-23.png)
Featured image created with DALL·E, chart from TradingView.com
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