Bitcoin Spot ETF outflows increased this week and the week was marked by price declines across the crypto space. These outflows, as before, are being led by the Grayscale Spot ETF, as investors feel their fees are too high. This has led to four consecutive weeks of outflows, marking the second time since Spot ETFs were approved for trading. So, where does Bitcoin price go from here?
Bitcoin Spot ETFs saw four consecutive days of outflows
The outflow started on Monday and continued in the following days. To date, the highest single-day outflow occurred on Tuesday, March 19, with total net inflows for the day reaching $326.2 million, a new record for Bitcoin funds.
The following days see lower figures when it comes to total net flows, but these remain negative. On Wednesday, net flows were $261.5 million, and on Thursday, March 22, net flows were $94 million. This marked the second time that the Spot Bitcoin ETFs have seen four consecutive days of outflows this year.
The vast majority of these outflows, as mentioned above, come from the Grayscale Bitcoin ETF. On the last day alone, the fund saw an outflow of 5,900 BTC, which translates to $339 million at current prices. Then, this past week, Coinglass data shows that 28,207.5834 BTC left the fund, reducing the total BTC under management by 7.35% in one week.
Other funds have also experienced outflows during this period, but to a much lesser extent. For example, the Invesco Galaxy Bitcoin ETF saw the second highest outflows of all funds, but only 667 BTC flowed out of the fund over the past day. The WisdomTree Bitcoin Fund saw an outflow of 10.8.2635 BTC, while all other outflow figures fell below 100 BTC.
What happened to BTC last time?
The last time Spot Bitcoin ETFs had four consecutive days of outflows was in January, from January 22 to January 25. This also shows some similarities with the current outflow trend in some countries, one of which was that outflows started at the beginning of the month. the week and continued until the end.
However, a difference between the two times is that the ETFs had just started trading, while the trading days fluctuated between inflows and outflows. Meanwhile, the current trend has come after almost two consecutive weeks of inflows, something that could impact the BTC price in the future.
In January, after four days, the outflow began to slow, and by Friday there was a change in direction, with inflows beginning to dominate. Once the tide turned and ETF inflows started to rise, the BTC price followed sharply.
With the climb came a more established rally in the Bitcoin price, taking it from $40,000 to over $70,000 in two months. If this trend repeats and inflows into Spot BTC ETFs exceed outflows, the BTC price is expected to rise again. However, if the outflows continue, the BTC price could crash even more.
BTC price drops below $65,000 | Source: BTCUSD on Tradingview.com
Featured image from 20 Minutes, chart from Tradingview.com
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