A fresh analysis by SoSoValue indicates notable shifts within the Bitcoin exchange-traded funds (ETFs) market, particularly spotlighting the outflows evident in Grayscale’s Bitcoin Trust (GBTC) and the broader net outflow totaling $58.03 million from Bitcoin spot ETFs.
The figures underscore the prevalence of outflows, with GBTC registering a net outflow of $79.38 million on its own, adding to its historical net outflow of $16.46 billion.
Conversely, the BlackRock ETF IBIT witnessed a net inflow of around $25.78 million.
GBTC Sees a total of $16.46B in Outflows
Despite GBTC witnessing over $16.46 billion in outflows, analysts are hinting at a potential shift in dynamics, particularly in light of Bitcoin’s notorious volatility. As April 20 approaches as a crucial date to watch, significant changes are expected for ETFs.
Addressing concerns about the sluggish inflows into US spot Bitcoin ETFs, Bloomberg ETF analyst James Seyffart offered reassurance to investors, stressing that such fluctuations are a normal aspect of market behavior. Seyffart emphasized that substantial inflows or outflows occur intermittently, typically stemming from demand-supply imbalances rather than indicating inherent flaws in the product.
On March 26, analysts speculated on the possibility of the outflows from Grayscale’s fund coming to an end. Senior Bloomberg ETF analyst Eric Balchunas suggested that most outflows might be tied to bankruptcies within the crypto industry, hinting at a potential stabilization in the near future.
Market turbulence aligns with Bitcoin’s price volatility, amplified by geopolitical occurrences like Iran’s retaliatory measures against Israel and the anticipation surrounding Bitcoin’s halving event on April 20.
Additional insights illuminate the extent of outflows from GBTC, soaring as high as $643 million, while other ETF offerings experienced modest inflows. To counter this outflow, Grayscale intends to progressively lower fees on its flagship product. CEO Michael Sonnenshein foresees fee reductions as the market matures, recognizing the anticipated outflows as investors capitalize on profit-taking chances and unwind positions linked to bankruptcies.
Bitcoin Price Continues to Decline Amidst Outflows and Speculations
While Bitcoin demonstrates resilience by hovering slightly below $64,000, it sharply contrasts with the recent surge fueled by the approval of Hong Kong Spot ETFs. Nonetheless, the cryptocurrency contends with downward pressure primarily stemming from significant outflows and lingering market uncertainty.
Further exacerbating the downward momentum on Bitcoin is the liquidation by Bitcoin miners in the days preceding and following the halving event. This ongoing selling activity exerts pressure on the cryptocurrency market, influencing price dynamics and contributing to the overall decline.
Analysts anticipate this selling pressure to persist over the coming weeks and months, potentially resulting in sideways movement in Bitcoin’s price during this period. They assert that this aligns with historical patterns observed during previous halving cycles, with a bullish trajectory expected thereafter.
