The exits from Grayscale Bitcoin ETF shook the market hard last week, leading to a dramatic drop in the price of BTC. However, with the new week came a change of direction as investors began to become bullish on Bitcoin once again. As a result, grayscale outputs ETFs slowed down, reaching one of the lowest points of the month.
Grayscale Bitcoin ETF Outflows Drop 60%
Grayscale exits increased last week, leading what turned out to be a full week of exits from Spot Bitcoin ETFs for the first time. Departures increased rapidly throughout the week, even moving into the new week. However, inflows into Spot Bitcoin ETFs have been increasing, which has overshadowed outflows from GBTC.
Despite the departures from GBTC Continuing, it has started to turn into a more positive narrative as the number of BTC leaving the fund is rapidly decreasing. To put this into perspective, the data show there were 299.8 BTC withdrawn from the fund on Wednesday, March 27th, and on Thursday, March 20204, that number dropped to 104.9 BTC, representing a 60% drop.
This marks the second day with the lowest outflows from the Grayscale Bitcoin ETF, just behind the March 12 outflows of 79 BTC. It also points to a decline in the volume of exits as investors begin to level off and find their footing elsewhere.
However, GBTC remained the loser of the Spot Bitcoin ETF race, taking care of a whole month of outings so far. Since ETFs were first approved in January until now, more than $14.6 billion has been moved from the fund, which represents around 50% of its total balance. These BTC have likely found a home elsewhere Spot ETFs funds that have registered massive inflows.
Unlike last week, inflows also dominated Spot Bitcoin ETFs this week. Total inflows for the week exceeded US$800 million, bringing total assets under management (AuM) to almost US$57 billion in less than three months.
Why This Could Trigger a BTC Price Rally
The last time that GBTC Outputs saw a slowdown after rising for about a week, triggered a Bitcoin price response in the form of a rally. Inflows also continued to dominate in the following weeks, and during this period, BTC price enjoyed a long recovery period. It went from $40,000 to over $70,000 in the space of two months.
If this trend repeats this time, then another big BTC price rally could be just around the corner. A similar price increase too put Bitcoin just above $100,000 In the next months. In this case, the uptrend would be far from over.
At the time of writing, Bitcoin is still struggling to break $70,000 after a 1% drop in the last day.
BTC price jumps above $70,000 | Source: BTCUSD on Tradingview.com
Featured image from Which.co.uk, chart from Tradingview.com
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