Multiple Bitcoin ETFs Report Net Outflows, GBTC OutFlows Cross $17 Billion
Highlights
- Five Out of ten Bitcoin ETFs see outflows amid slowdown in US GDP growth.
- Grayscale GBTC outflows have now crossed $17 billion since inception.
- Deceleration in Bitcoin ETF inflows to continue amid rising Treasury yields.
Spot Bitcoin ETFs in the United States recorded one of the biggest outflows so far in the month of April on Thursday. Yesterday, the total outflows across all ten spot Bitcoin ETFs stood at a staggering $217 million. The Grayscale Bitcoin ETF GBTC led the pack with $140 million in outflows.
Multiple Bitcoin ETFs See Outflows
Along with Grayscale’s GBTC, several other Bitcoin ETFs recorded net outflows on Thursday. After GBTC, Ark Invest’s Bitcoin ETF ARKB recorded the most outflows at $31.3 million, as per data from Farside Investors. On the other hand, Fidelity’s ETF FBTC recorded $22.6 million in outflows, Valkyrie’s ETF BRRR saw $20 million in outflows, and Bitwise’s ETF BITB saw $6 million in outflows.
On the other hand, BlackRock’s IBIT ETF saw the second consecutive day of zero inflows this week. This is indicating that after a strong start to Bitcoin ETF since its launch in January, fresh capital inflows in the asset class have been drying up. Despite the strong Bitcoin ETF trading activity, the overall flows have turned negative for the time being.
The massive outflows from BTC ETF come just on the day when US stock indices faltered following weak US GDP Growth data. As a result, Bitcoin and the broader cryptocurrency market faced a major price correction on Thursday.
Amid the cooling business activity in the U.S., access to liquidity is likely to be limited going ahead. On the other hand, high inflation has continued to spark worries leading to expectations that the Fed will continue to hold the interest rates higher for longer.
Slowdown in ETF Inflows to Continue
Earlier this week, Standard Chartered, a UK-based bank, released a report attributing the deceleration in ETF inflows to a variety of factors.
Geoff Kendrick, the lead author of the report, pointed to macroeconomic factors such as “increased Treasury yields and a more complex environment for risk assets influenced by geopolitical events in the Middle East.” Kendrick suggested that “the initial surge of ETF purchases may have largely concluded,” indicating that the subsequent influx of funds will hinge on the incorporation of spot Bitcoin ETFs into “more extensive macro funds.”
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