Despite a sustained four-day streak of net outflows from Bitcoin Spot Exchange-Traded Funds (ETFs) totaling $93.85 million, the Bitcoin price has risen impressively to reclaim the $66,000 mark. According to data from Farside Investors, the Grayscale ETF GBTC saw significant outflows yesterday, with one-day net outflows of $358 million, culminating in a historic net outflow of $13.63 billion for GBTC alone.
In stark contrast, the BlackRock Bitcoin spot ETF (IBIT) witnessed significant net inflows of $233 million yesterday, pushing IBIT’s total net inflows to $13.32 billion. This is slightly below average for BlackRock, which has seen inflows of $271.9 million since its January 11 launch.
Other ETFs haven’t done as well in recent days. Fidelity’s FBTC, the second-largest ETF, has averaged $141.5 million in daily inflows to date, but had a disappointing $2.5 million inflow yesterday.
The third largest, Ark Invest’s spot Bitcoin ETF, has seen average inflows of $40.9 million to date, while yesterday’s inflows were just $2.0 million. Bitwise’s BITB, which ranks fourth, has collected an average of $30.7 million, with a modest inflow of $12 million yesterday.
Across the board, all spot Bitcoin ETFs, including GBTC, have recorded average daily inflows of approximately $230 million since January 11.
Bitcoin Price Stagnant: Reason for Worry?
CryptoQuant CEO Ki Young Ju as long as insights on the situation via Demand may rebound as BTC price approaches critical support levels. New whales, mainly ETF buyers, have an on-chain cost basis of $56K. Corrections typically involve a maximum decline of around 30% in bull markets, with a maximum pain of $51,000.”
Crypto analyst WhalePanda marked the trend and noted: “Yesterday’s ETF flows: another negative day, that’s four in a row […] Frankly surprised by how big the outflow from GBTC is. Another $358.8 million for a total of $1.83 billion in just four days.” WhalePanda also addressed Genesis’ role, suggesting that the company’s in-kind sale of GBTC shares to BTC could explain the large outflows without corresponding market dumps.
Thomas Fahrer, founder of Apollo, offered from a bullish perspective: “I know it’s illegal to place anything bullish on #Bitcoin ETFs right now, but I’m going to do it anyway. GBTC sale is temporary. Financial advisors and institutions have barely started buying. There will be an inflow of $100 BILLION over the next 1 to 2 years. Patience.”
Charles Edwards, founder of Capriole Investments, commented on the grayscale situation: “Grayscale Bitcoin ETF holdings fall off a cliff. A drop of 50%, or about $20 billion at the current BTC price. We are days/weeks away from reducing costs to stop the bleeding. Blackrock companies expected to overtake Grayscale before the halving!”
While the past few days have been quite disappointing, it’s worth noting that the outflows have come (almost) exclusively from Grayscale’s GBTC, while other investors are holding tight to their Bitcoin investments. This means it’s only a matter of time before Grayscale’s outflows stop, and even a small inflow from the other ETFs will have a big impact (without the outflows).
At the time of writing, BTC was trading at $66,203.
Featured image created with DALL·E, chart from TradingView.com
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