Spot Bitcoin ETF loses funds for 4th consecutive day

On March 21st, there were $94 million in net outflows from 10 newly launched Spot Bitcoin ETFs.

Although this figure is lower than the previous three days, it was the day when funds were withdrawn from institutional investment products.

According to Pharcyde Investors, outflows on March 18, 19, and 20 were $154 million, $326 million, and $261 million, respectively. This week's net outflows are currently $836 million, but Friday's numbers are not yet included.

This suggests that the Bitcoin ETF hype of the past two months has temporarily stopped as investors book profits.

Bitcoin ETF Flow (USD Million) – 2024-03-21

Total net flow: -94
(provisional data)

IBIT: 233.4
FBTC: 2.9
BITB: 12
ARKB: 2
BTCO: 4.2
EZBC: 3.8
BRRR: 4.7
Ho DL: 1.8
BTCW: 0
GBTC: -358.8

For full data and disclaimer, please visit https://t.co/4ISlrCgZdk.

— Farside Investor (@FarsideUK) March 22, 2024

ETF fund outflow

Grayscale, which has been experiencing massive outflows of BTC throughout this month, recorded another $359 million in outflows on March 21st.

“GBTC has lost 42.3% of its equity since its conversion to an ETF,” said industry analyst James Seifert.

GBTC currently holds 355,759 BTC but has lost 264,214 BTC since the conversion. The total outflow from Grayscale so far this week is a whopping $1.83 billion.

Fellow ETF Analyst Eric Balchunas commented:

“What a thrill. I thought the worst was over. I don't think so. Would someone who hadn't intended to retire in the past two months be retiring now?”

Of which, $358.8 million $GBTCthe leakage does not stop.

GBTC has lost 42.3% of its stock since its conversion to an ETF. https://t.co/bxFtNrgKsv

— James Seyffert (@JSeyff) March 21, 2024

Balciunas said the increased outflows from Grayscale were “likely to be related to bankruptcies due to their size and consistency.”

He added that the Gemini/Genisys outflow was likely buying BTC with cash. So the market was holding out.

In February, a bankruptcy judge allowed Genesis to liquidate about $1.3 billion worth of GBTC stock as part of repaying investors.

The worst is probably nearing an end, Balciunas said, adding: “Once it's over, only retail will be left and the flow should resemble the trickle of February.”

Blackrock inflow slows down

BlackRock, which recently announced a new tokenized RWA fund, prevented outflows on Thursday from hitting triple digits like they had the previous three days. IBIT had inflows of $233.4 million on the day.

Total inflows into the fund this week were $809 million. BlackRock was very weak for two days on Tuesday and Wednesday as BTC price plummeted.

The other seven funds saw minimal inflows on March 21st, while the Invesco Galaxy Bitcoin ETF (BTCO) saw outflows of $10 million.

On this day, the cryptocurrency market fell by 1.5%, reducing its market capitalization to $2.63 trillion at the time of writing.