Spot Bitcoin ETFs Experience Fourth Consecutive Day of Outflows

Spot Bitcoin exchange-traded funds (ETFs) have experienced substantial outflows over the course of three to four consecutive days this week.

The ten spot Bitcoin ETFs saw a combined net outflow of over $740 million during this period, with the Grayscale Bitcoin Trust (GBTC) leading the losses.

TLDR

• Spot Bitcoin ETFs experience significant outflows over three to four consecutive days in March 2024, totaling over $740 million.
• Grayscale Bitcoin Trust (GBTC) leads the outflows, with over $1.4 billion leaving the trust in a single week, setting a new record for cumulative outflows in ETF history.
• Despite the outflows, Bitcoin’s price rallies above $67,000 due to the Federal Reserve’s dovish stance, with analysts predicting potential consolidation followed by a surge towards all-time highs.
• BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Bitcoin ETF (FBTC) see moderation in subscriptions during the outflow period.

According to data from Farside Investors, the outflows began on March 18, with $154.3 million exiting the funds. The trend continued on March 19 and 20, with outflows of $326.2 million and $261 million, respectively.

GBTC alone witnessed a staggering outflow of $386 million on March 20, contributing to its total outflows exceeding $13.2 billion since its launch.

Bitcoin ETF Flow (US$ 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
HODL: 1.8
BTCW: 0
GBTC: -358.8

For all the data & disclaimers visit:https://t.co/4ISlrCgZdk

— Farside Investors (@FarsideUK) March 22, 2024

Bloomberg ETF expert Eric Balchunas noted that GBTC’s recent outflow surge indicates a “second wind” of investor withdrawals, with a remarkable $1.4 billion leaving the trust in a single week.

This development has set a new record for cumulative outflows in ETF history, surpassing all other ETFs in year-to-date outflows.

The more I think about it the more likely the uptick in flows is related to the bankruptcies bc of the size and consistency. The flows in Feb showed what retail outflows look like, smaller and random pattern. Also any Gemini/Genisis outflows likely buying btc w cash hence market…

— Eric Balchunas (@EricBalchunas) March 22, 2024

Despite the significant outflows, Bitcoin’s price managed to rally above $67,000, largely driven by the Federal Reserve’s dovish stance.

Analysts remain optimistic about Bitcoin’s future, with some predicting a potential consolidation period followed by a surge towards all-time highs, especially with the upcoming halving event scheduled for next month.

However, the Asian market painted a different picture on Thursday, with Bitcoin losing momentum compared to continued gains in global stocks and gold. The news of outflows from Bitcoin ETFs likely contributed to this contrasting performance.

Other notable Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Bitcoin ETF (FBTC), experienced a moderation in subscriptions during the outflow period.

Despite the recent challenges, the overall performance of these funds remains impressive, with net inflows of $11.4 billion recorded since their launch, marking one of the most successful debuts for an ETF category.