Record GBTC Outflows, BTC Holds Ground

Grayscale’s GBTC has notched its largest day of outflows since its launch, though ETF analysts remain optimistic that Bitcoin ETFs are only just starting to gain momentum.

Bitcoin (BTC) is down 4% and is currently trading just under $65,000 as the selling of Grayscale Bitcoin Trust (GBTC) shares hit its highest level ever.

 

Source: BitDelta, BTC/USDT

More than $640 million worth of Bitcoin flowed out of crypto asset manager Grayscale’s spot Bitcoin ETF, marking the largest day of outflows for the fund since its conversion to a spot ETF on January 11th.

More specifically, Outflow from GBTC hit $643 million on Tuesday, March 18th, according to data from BitMEX research.

 

Source: X

Data from investment firm Farside indicates a net outflow from bitcoin ETFs totalling $154 million.

Among these, the iShares bitcoin ETF (IBIT) experienced the highest inflow, amounting to $451.5 million, while other products collectively saw inflow of roughly $36.7 million.

Several market commentators have pointed to slowing Bitcoin ETF flows, the upcoming halving event, and the U.S. Federal Reserve FOMC meeting on March 20th as justifications for BTC’s less enthusiastic price action over the last few days.

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After a continuous slide over the last week, the BlackRock Bitcoin ETF picked up pace once again. On Monday, March 18th, the BlackRock BTC ETF recorded $451 million outflows, as per data from Farside investors.

As we all know, opinions tend to diverge across the markets, especially when it comes to crypto-related matters.

Other analysts have shared an optimistic outlook for Bitcoin ETF flows moving forward.

 

Source: Farside Investors

Ever since the bitcoin exchange-traded funds (ETFs) launched earlier this year, there have been significant outflows from GBTC – which recently converted into an ETF – due to its higher fees.

What does this exactly mean for Bitcoin?

Simply explained, this selling put pressure on the price of the world’s largest cryptocurrency.

Now, one reason for GBTC’s notable outflows could be its higher management fee of 1.5% compared to competitors charging less than 0.3%.

We can clearly see a discrepancy between the fees.

The total Bitcoin holdings have decreased from 620K BTC to 328K BTC, indicating a significant reduction of 40%.

Interestingly enough, Grayscale has recently filed for the Bitcoin mini trust with the U.S. Securities and Exchange Commission (SEC).

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Renowned Bloomberg ETF Strategist Eric Balchunas highlighted recent shifts in the global BTC ETFs scene.

As U.S. spot ETFs emerge, offering more cost-effective and liquid options, Bitcoin ETFs in both Europe and Canada have been experiencing outflows as well.

This trend underscores the competitive landscape of the ETF market, where U.S. ETFs often attract substantial flows, which impacts counterparts in other regions.