March 27, 2024
Bitcoin ETF Exodus: Grayscale's Rapid Outflows Forecast Complete Depletion in Four Months
Bitcoin ETF

Bitcoin ETF Exodus: Grayscale’s Rapid Outflows Forecast Complete Depletion in Four Months

United States spot Bitcoin exchange-traded funds (ETFs) faced their most substantial day of combined outflows to date, with a staggering $326 million exiting the market on March 19.

This significant movement in assets comes amidst a volatile period for the cryptocurrency market, as Bitcoin’s price experienced a notable decline.

Grayscale’s Bitcoin Trust Facing Depletion

As of March 19, Grayscale reported that its Bitcoin Trust (GBTC) boasted over $23.7 billion in assets under management. However, with the current outflow rate, the trust could see its assets depleted as early as late July.

On March 19 alone, GBTC observed net outflows of $443.5 million, marking a continuation of the trend seen in the previous day.

While overall outflows dominated the market, a few players managed to attract net inflows. BlackRock, Fidelity, and Bitwise’s ETFs were the exceptions, with their funds experiencing a combined $117.3 million in net inflows.

Notably, BlackRock’s iShares Bitcoin Trust (IBIT) led the pack with the day’s largest net inflows of $75.2 million, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $39.6 million in net inflows.

Flows for all 10 U.S. spot Bitcoin ETFs, green row highlights March 19. Source: Farside Investors

Bitwise Bitcoin ETF Struggles Amidst Market Downturn

Among the newcomers to the Bitcoin ETF landscape, the Bitwise Bitcoin ETF (BITB) faced challenges, recording its lowest day of net inflows at just $2.5 million. This performance marked a stark contrast to its previous activity and underscored the turbulent nature of the cryptocurrency market.

The sizeable outflows from Bitcoin ETFs coincided with a notable downturn in Bitcoin’s price, which plummeted to as low as $62,400 on March 19 during U.S. trading hours.

This decline followed the cryptocurrency’s recent peak of $73,835 on March 14. At present, Bitcoin has fallen by 5.4% in the last 24 hours, with its current trading price resting at $61,173, just above its intraday low.

March 18 marked GBTC’s largest net outflow day to date, with a staggering $642.5 million exiting the fund. Since its transition from a trust to an ETF on January 11, GBTC has witnessed nearly $12.9 billion in outflows over 49 trading days, highlighting investor sentiment and market dynamics.

Conclusion

The recent surge in outflows from Bitcoin ETFs, particularly from Grayscale’s GBTC, underscores the uncertainty surrounding the cryptocurrency market.

As investors navigate through volatile price movements, the resilience of certain funds in attracting inflows amidst broader market turbulence suggests a nuanced landscape for cryptocurrency investments.

With Bitcoin’s price fluctuations and ongoing regulatory developments, market participants continue to assess risk and opportunity in the evolving digital asset ecosystem.

Image: Wallpapers.com

Related posts

Spot Bitcoin ETFs Approved: Check Out the 11 US Listings

Harper Hall

Grayscale CEO Foresees Fee Reductions for Bitcoin ETF Amid $12 Billion Outflows

Kevin Wilson

BlackRock’s Latest Bitcoin ETF Ad Labels BTC as ‘Progress’

Bran Lopez

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Index