Bitcoin ETFs Experience Massive Outflows As Grayscale Bleeds $303M

Published 09/04/2024, 18:01
Updated 09/04/2024, 18:15
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  • GBTC’s significant outflow signals shifting investor sentiment towards Bitcoin spot ETFs.
  • Despite GBTC’s outflows, new ETFs contributed to a net increase in Bitcoin holdings.
  • Bitwise BITB ETF emerges as a top performer amidst overall weak ETF inflow figures.

Total net outflows from Bitcoin spot ETFs reached $223 million yesterday, marking a significant shift in capital movement within the cryptocurrency investment sphere. As per Wu Blockchain, an analytic firm, among the notable changes, Grayscale ETF GBTC experienced a substantial single-day net outflow of $303 million, indicating a noteworthy departure of funds from this particular avenue.

Conversely, the Bitwise ETF NYSE emerged as a standout performer, witnessing a single-day net inflow of approximately $40.33 million, showcasing investor confidence in this asset class.

The dynamics of capital flows within the cryptocurrency ETF landscape have been subject to fluctuations in recent days. Monday, April 8th, saw a collective outflow of $224 million from eleven newly launched spot Bitcoin ETFs, as per preliminary data from Farside Investors. This reversal in trend follows four consecutive days of inflows, during which institutional investment products accumulated a total net of $570 million.

Grayscale’s GBTC, in particular, has been under scrutiny, with its largest outflow since March 25, 2024, shedding $303 million in a single day, equivalent to around 4,300 BTC. Notably, the total outflow from GBTC since its conversion to a spot ETF in January has reached $15.8 billion, representing 48% of the BTC held before the conversion.

Despite the outflows from GBTC, newly launched ETFs collectively acquired 520,544 BTC over three months, resulting in a net increase of approximately 220,000 BTC, as observed by HODL15Capital. However, traditional investment giants like BlackRock and Fidelity experienced subdued inflow days, with $21.3 million and $6.3 million, respectively.

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