From Monday to Wednesday, the Spot Bitcoin ETF saw $742 million in outflows. SOPA Image—Getty
The 10-traded spot Bitcoin exchange-traded fund reported its biggest three-day outflow since its launch on January 11, according to Bloomberg data, as Bitcoin hit an all-time high of 72,000 last week. It was a reversal of the incredible inflows that led to the US dollar.
So far this week, $1.4 billion has flown out of the Grayscale Bitcoin Trust this week alone, in addition to slower inflows into the second and third most popular products, BlackRock and Fidelity products. , more than $742 million has flown out of the fund so far. , Each.
Grayscale's outflows have outpaced the slowdown in inflows from new Bitcoin ETF issuers and are the largest since its inception. Net outflows from U.S. issuers so far this week totaled $749 million. pic.twitter.com/Z3Uge8VR32
— James Butterfill (@jbutterfill) March 21, 2024
“It is not uncommon for ETF flows to change based on price movements in the underlying asset class, and Bitcoin has been in retreat recently. Spot Bitcoin ETFs have been successful, but they are not siphoning in new money every day. “No,” said Nate Geraci, president of ETF Store. luck.
The recent increase in GBTC outflows is likely due to early investors looking to lock in profits after Bitcoin recently hit an all-time high, Pitchbook said. Cryptocurrency analyst Robert Lee said. luck.
“The Grayscale team believes that GBTC's diverse shareholder base has made investments that affect the flow of the trust, including harvesting profits, engaging in arbitrage, and liquidating shares to repay creditors in various bankruptcy estates. We expected that we would work on strategy,” Grayscale said in a statement.
Geraci points out that many registered investment advisers (RIAs) and institutional investors “haven't even stepped foot in” funds yet because they are “very methodical” in how they allocate their money. As a result, he estimates that the main drivers of flows so far have been retail investors and traders, who are “much more likely to move in and out of positions.”
$GBTC This week saw a “second wind” of $1.4 billion in outflows, with outflows since the beginning of the year twice as much as any other ETF, setting a record for cumulative outflows in ETF history. Even considering all of this, it still ranks 3rd overall (out of 3,400 ETFs) in terms of annual returns. https://t.co/HitMwpu7dR
— Eric Balchunas (@EricBalchunas) March 21, 2024
In fact, BlackRock's iShares Bitcoin Trust (IBIT) averages 250,000 trades per day, with an average trade size of 326 shares ( (approximately $13,000), suggesting these transactions were made by retailers. Balciunas told investors: coin desk.
Because RIAs have a responsibility to their clients and the necessary due diligence, “it's going to take some time” for more firms to start recommending Bitcoin-related products to their clients, Pitchbook's Lu said. Meanwhile, retail trader movements will continue to have a significant impact on pricing.
“It's going to take time for real financial institutions, wealth managers and advisors to start buying these things for their clients,” said Bloomberg analyst James Seifert. luck. “We don't know yet how much demand there will be from that channel, but it could increase in the future.”
Despite recent outflows, the ETF as a whole has seen net inflows of more than $11.4 billion to date, making its debut one of the most successful in history, Bloomberg reported.
Bitcoin was trading around $66,600 as of 12:45 pm ET on Thursday, about $6,000 below its all-time high on March 14. Bitcoin fell to nearly $61,000 on Wednesday, down 16% from last week's high. Traders were waiting to see if the Federal Reserve would cut interest rates. (The price remained unchanged.)
