Bitcoin Spot ETFs Witness Net Outflows for Third Consecutive Day
A total of $261.5 million has left the ten approved Bitcoin spot exchange-traded funds (ETFs) in the United States over the course of three days, with net outflows continuing on March 20. This brings the cumulative net outflows to $742 million over the three-day period, as reported by data from Farside Investors. On March 18 and 19, net outflows amounted to $154.3 million and $326.2 million, respectively.
GBTC Outflows Persist
The primary contributor to the outflows is the Grayscale Bitcoin Trust (GBTC), which experienced an outflow of $386.6 million. The Invesco Galaxy Bitcoin ETF (BTCO) also saw $10.2 million exit the fund. These outflows overshadowed the minimal inflows from the other eight approved ETFs.
- The BlackRock iShares Bitcoin Trust (IBIT) had its second-lowest net inflow day at $49.3 million.
- The Fidelity Wise Origin Bitcoin Fund (FBTC) had a relatively low inflow day at $12.9 million.
- This marks the second-highest net outflow day for the ten ETFs, with the highest being the $326.2 million outflow on March 19.
Bitcoin’s Outlook Remains Optimistic
Despite the recent downturn, many investors and market analysts remain optimistic about Bitcoin’s future. The approval of spot Bitcoin ETFs in January has sparked a new wave of interest in cryptocurrencies, leading to record weekly inflows into digital asset investment products. CoinShares data shows that these products received a total of $2.9 billion in inflows last week, bringing the year-to-date inflows to an impressive $13.2 billion.
The upcoming Bitcoin halving event, scheduled for next month, is also expected to boost the cryptocurrency’s value. This event will halve the number of new tokens released, effectively tightening the supply amidst rising demand.
Additionally, Grayscale plans to gradually reduce fees on its flagship product, the Grayscale Bitcoin Trust ETF. As outflows continue to increase, reaching $12 billion, Grayscale CEO Michael Sonnenshein anticipates fee reductions in the coming months as the crypto ETF market matures. He explained that higher fees are common for new products in their initial stages.
Hot Take: Bitcoin Spot ETFs Experience Ongoing Net Outflows
Bitcoin spot ETFs in the United States have seen net outflows for three consecutive days, with a total of $261.5 million leaving the ten approved funds on March 20. The main contributor to these outflows is the Grayscale Bitcoin Trust (GBTC), which experienced an outflow of $386.6 million. Despite this recent downturn, the outlook for Bitcoin remains optimistic among many investors and market analysts.
Sources:
Farside Investors,
Crypto News,
Wu Blockchain Twitter,
CoinShares
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