GBTC Bitcoin ETF Outflows Surge Past $15.15 Billion, More Pain Left Ahead?

The Grayscale Bitcoin ETF GBTC has been at the center of attention amid massive outflows taking place ever since the launch of spot Bitcoin ETFs back in January. As per data from Farside Investors, the GBTC outflows have crossed $15 billion with more than 50% of its Bitcoin holdings eroded.

Bitcoin ETF Holdings Cross $12 Billion, GBTC Outflows Ebb

In the latest report, data reveals that Bitcoin spot ETFs experienced total net inflows amounting to $39.47 million on April 2nd. Notably, Grayscale ETF GBTC recorded a single-day net outflow of $81.86 million, while BlackRock ETF IBIT saw a net inflow of $150 million.

Additionally, Fidelity ETF FBTC witnessed a net inflow of $44.77 million. The historical cumulative net inflow for Bitcoin spot ETFs reached $12.08 billion, reflecting sustained investor interest in this asset class.

However, the positive development here is that GBTC has experienced a shift in its standing within the ETF market. For the first time since its launch on January 11, 2024, GBTC is no longer the product with the largest daily outflow.

On Wednesday, ARKB’s outflow of $88 million surpasses GBTC’s outflow, which stands at $82 million. This change underscores evolving investor sentiments and dynamics within the ETF landscape.

For the first time since the ETFs launched on 11th Jan 2024, GBTC is NOT the product with the largest daily outflow

Today's ARKB outflow of $88m is larger than GBTC at $82m

Congratulations to @BarrySilbert !! https://t.co/8bYEDw3G6K

— BitMEX Research (@BitMEXResearch) April 2, 2024

New BTC ETF Products In the Market

On Tuesday, ProShares unveiled two new exchange-traded funds (ETFs) to cater to investors seeking amplified exposure to Bitcoin’s performance. The ProShares Ultra Bitcoin ETF (BITU) tracks double the daily returns of Bitcoin as per the Bloomberg Bitcoin Index, while the ProShares UltraShort Bitcoin ETF (SBIT) offers inverse exposure to Bitcoin’s performance. Last month in March, Grayscale also filed for a mini-trust of its GBTC product.

Both ETFs feature an expense ratio of 95 basis points, providing investors with alternative avenues to engage with the cryptocurrency market. Speaking on the development, Michael O’Riordan, founding partner of Blackwater, an ETF consulting firm, said:

“It demonstrates how ETF managers can be an opportunistic bunch by trying to leverage off the positive sentiment as much as possible”.

The fluctuating Bitcoin price underscores the increasing interest in investment instruments providing leveraged and short exposure to the cryptocurrency. Despite experiencing a 10% decline since reaching a peak in mid-March, Bitcoin has surged by 54% since the beginning of the year.