Spot Bitcoin ETF: Grayscale Outflows Slows Down, But There’s a Catch
The spot Bitcoin ETF market has taken a new twist concerning the capital net flow as pointed out by Bloomberg Exchange Traded Fund analysts James Seyffart and Eric Balchunas.
Spot Bitcoin ETF Flow Changing Course
According to Blachunas, the Grayscale Bitcoin Trust (GBTC) outflows are trending down. The data presented by Seyffart showed that the Michael Sonneshein-led firm saw a total outflow of $429.3 million. This figure is surprisingly down from the $515.3 million recorded on January 24.
The tapering down of the departure of funds from Grayscale spot Bitcoin ETF product is a positive one for the market after close to two weeks of consistent outflow. The impact of these outflows has been a major slump in the price of Bitcoin as investors in the general market considered the fund redistribution as a selloff signal.
The dampened sentiment the trend caused has sparked the selloff in Bitcoin whose price is battling to keep support at the $40,000 mark.
While the outflow in Grayscale has slowed as Balchunas pointed out, he also noted that there has been a slowdown in the total amount of funds flowing into the other spot Bitcoin ETF products from issuers like BlackRock and Fidelity Investments.
Per the data presented by James Seyffart, BlackRock has seen a Day-9 inflow of $66.2 million while Fidelity Investments has seen an inflow of $125 million, a value that surprisingly surpasses that of BlackRock. Comparing this data to Yesterday’s which saw BlackRock welcome $160.1 million in inflows and Fidelity around $157.7 million respectively.
Notably, this shift in trend confirmed the thesis that outflow from Grayscale Investments’s GBTC is what the majority of the competing asset management firms are benefiting from. At the moment, total net flow for Day 9 is pegged at more than $824 million.
The good news: GBTC outflows trending down. The bad news: so are the Nine's. That leaves us with TOTAL ROLLING NET FLOWS of +$824m. Also $ARKB and $BITB crossing half a billion is remarkable. For any normal launch in first month that's considered blockbuster-level success. https://t.co/jPtlxhMtwP
— Eric Balchunas (@EricBalchunas) January 25, 2024
Precedent Playing Out for Spot Ethereum ETF
There are many aspects of the current spot Bitcoin ETF administration in the market that are setting a precedence for the proposed spot Ethereum ETF. First, the numerous applications for the spot Ethereum product are currently being deliberated on by the market regulator with those of BlackRock, Fidelity Investments and Grayscale having already been delayed.
Grayscale Investments also has a robust Ethereum Trust that might play a pivotal role if its spot ETH ETF finally gets approved. There is a likelihood there might be an imbalance in outflow when the product enters the market to model the current trend seen in the spot Bitcoin ETF ecosystem.
- XRP to $9? Analysts Tip ‘XRP Is a Buy’ as Price Targets 200% Surge
- CZ Endorses Hyperliquid Rival Aster DEX, Token Rallies 1,500%
- Tom Lee’s BitMine Adds $84M in ETH as Expert Predicts Ethereum Rally to $5K
- Grayscale’s Crypto Index Fund Sees ‘Solid Start’ as SOL, XRP Institutional Demand Climbs
- Senate Democrats Urge Republicans for ‘True Collaboration’ to Quickly Pass CLARITY Act
- PUMP Price Forecast: Whale Buys 1B Tokens as Bullish Pennant Signals 65% Breakout
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
