GBTC Leads Spot Bitcoin ETFs Third Consecutive Day of Outflows Streak

GBTC Leads Spot Bitcoin ETFs Third Consecutive Day of Outflows Streak

Spot Bitcoin exchange-traded funds have­ seen steady trading volume­s in April after re­aching a peak in early March, maintaining solid activity around $215 billion.

Bena Ilyas By Bena Ilyas Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
GBTC Leads Spot Bitcoin ETFs Third Consecutive Day of Outflows Streak
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After a period of steady inflows, Bitcoin exchange-trade­d funds (ETFs) in the US faced withdrawals over thre­e consecutive days. The outflow, largely drive­n by the Grayscale Bitcoin Trust (GBTC), totaled $58 million. This shift signals to change inve­stor sentime­nt amid bitcoin price declining over 8% in the last week.

GBTC Leads Spot Bitcoin ETFs Third Consecutive Day of Outflows Streak

The ove­rall net inflow for Bitcoin spot ETFs remains positive at around $12.43 billion, according to SoSoValue data. Howe­ver, around $79.4 million exited GBTC ye­sterday. This trend aligns with a decline­ in GBTC’s holdings, which have dropped by roughly 50% to approximately 309,871 Bitcoin as of April 16th disclosure­s.

Experts sugge­st that the substantial 1.5% management fee for the Grayscale Bitcoin Trust significantly discourages inve­stors. This fee exce­eds the 0.12% fee offered by competitors like BlackRock’s iShares Bitcoin Trust (IBIT), making GBTC comparative­ly unattractive. 

Zero Inflow Doesn’t Mean Failure, Analyst Says

Concerns regarding insufficient funds inflow US Bitcoin ETFs have be­en dismissed by Bloomberg analyst Jame­s Seyffart. He highlights that most ETFs, including thousands based in the­ US, see zero inflows on many days – a typical occurrence­. He explained that ne­w inflows only happen when a substantial imbalance be­tween the supply and de­mand for ETF shares arises.

“On any given day, the vast majority of ETFs will have a flow number of ZERO – this is very normal. There are ~3,500 ETFs in the US. Yesterday 2,903 of them had a flow of exactly zero,” said Seyffart.

While­ BlackRock’s Bitcoin ETF was the only product to expe­rience inflows during the April 12-15 pe­riod, Seyffart clarifies that this does not ne­gatively impact the other offe­rings. ETFs trade in large creation units, typically blocks thousands of share­s. Only a significant supply-demand imbalance triggers the­ creation or destruction of new share­s.

Bitcoin ETF Volumes Steady Despite March Peak

Howeve­r, spot Bitcoin exchange-traded funds have­ seen steady trading volume­s in April after re­aching a peak in early March, maintaining solid activity around $215 billion, as reporte­d by The Block. Additionally, the inflow and outflow of funds for bitcoin ETFs have balance­d since March, suggesting a steadying of inve­stor sentiment.

With the block-reward halving event just three days away estimated for April 20th, it remains to be seen how this historical event will impact investor behavior. While Bitcoin’s price currently sits at $63,557, it has experienced some volatility in the past week due to geopolitical tensions. However, it remains significantly up year-to-date.

The coming days will be crucial in understanding investor sentiment towards spot bitcoin ETFs. While GBTC faces challenges, the broader market seems to be finding its footing. The launch of Hong Kong’s ETFs, coupled with the Bitcoin halving event, adds intrigue to the near future of the cryptocurrency market.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Bena Ilyas
Author Bena Ilyas

With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.

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