GBTC Records Its Biggest Daily Outflow, Bitcoin ETF Inflows Drying Up

In recent days, the influx of funds into the nine US-launched spot Bitcoin ETFs appears to be dwindling, with net inflows totaling $150 million or less. Concurrently, outflows from the Grayscale Bitcoin ETF (GBTC) have resumed at an accelerated pace.

GBTC Sees Record Outflows

On Monday, March 18, the Grayscale Bitcoin ETF GBTC recorded its highest-ever outflow of $643 million. This means that a staggering 10,000 BTC moved out of GBTC’s holdings with chances of them going to other fund managers.

Biggest outflow for GBTC thus far https://t.co/g6wdrTPOhE

— Eric Balchunas (@EricBalchunas) March 18, 2024

Bitcoin analyst HODL15Capital provides further insights stating that following today’s outflows, $GBTC has witnessed a loss of 250,600 Bitcoin since its ETF conversion. The total Bitcoin holdings have decreased from 620K BTC to 368K BTC, indicating a significant reduction of 40%. Interestingly, Grayscale has recently filed for the Bitcoin mini trust with the US SEC.

Besides, the analyst also noted that there’s no cause for alarm for these activities as they are just settling today’s outflows. Reportedly, these coins are moving to reputable entities like Bitwise, VanEck, Fidelity, among others.

BlackRock Bitcoin ETF Picks Up Pace Again

After a continuous slide over the last week, the BlackRock Bitcoin ETF picked up pace once again. On Monday, March 18, the BlackRock Bitcoin ETF recorded $451 million outflows, as per data from Farside investors. On the other hand, all others recorded inflows in single digital of less than $10 million.

This shows that Black Rock might have attracted a majority of GBTC outflows on Monday. Furthermore, the total inflows into Bitcoin ETFs have been drying up significantly.

During an interview with Bloomberg TV, Grant Engelbart, Vice President and Investment Strategist at Carson Group, stated that only a handful of advisors typically allocate an average of 3.5% of BTC ETFs to client household portfolios.

Grant Engelbart, Carson Group vice president and investment strategist, sees a handful of advisors allocating 3.5% of Bitcoin ETFs on average to client household portfolios.

He speaks with Scarlet Fu and Katie Greifeld on Bloomberg ETF IQ https://t.co/OPSAiysQ3Y pic.twitter.com/acikDctTCe

— Bloomberg TV (@BloombergTV) March 18, 2024

Renowned Bloomberg ETF Strategist Eric Balchunas sheds light on the recent developments in the global Bitcoin exchange-traded fund (ETF) landscape. Amid the launch of US spot ETFs offering more cost-effective and liquid options, Bitcoin ETFs in Europe and Canada have experienced outflows.

This trend underscores the competitive dynamics within the ETF market, with US ETFs typically attracting significant flows at the expense of counterparts in other regions. According to CoinShares International Ltd., investors have withdrawn a combined total of $738 million from Bitcoin products on exchanges in Germany, Canada, and Sweden since the beginning of 2024.