Grayscale’s GBTC ETF Sees Record Outflows as BlackRock’s IBIT ETF Generates Inflows
Grayscale’s GBTC spot bitcoin exchange-traded fund (ETF) experienced record daily outflows of $642.5 million on Monday, surpassing the previous peak of $640.5 million set on January 22. Despite inflows of $451.5 million from BlackRock’s dominant IBIT ETF, GBTC’s outflows resulted in a total net outflow of $154.4 million for the first time since March 1. Bitwise’s BITB was the second-highest with $17.6 million worth of inflows, while Fidelity’s FBTC ETF had its lowest inflows since trading began on January 11, generating just $5.9 million.
Total net inflows since the U.S. spot bitcoin ETF trading began on January 11 now stand at just over $12 billion, with assets under management (AUM) for spot bitcoin ETFs approaching 875,000 BTC ($56 billion). The nine newborn ETFs, excluding Grayscale’s converted fund, have accumulated nearly 489,000 BTC ($31 billion), with BlackRock’s IBIT alone reaching almost 250,000 BTC ($16 billion) in AUM.
In comparison, assets held by Grayscale’s higher-fee GBTC fund have fallen by 38% from around 619,000 BTC to 385,665 BTC ($24 billion) in the same period.
Spot Bitcoin ETF Trading Volume Slows
Daily trading volume for U.S. spot bitcoin ETFs dropped to $4.2 billion on Monday, down from a range of $5.5 billion to $7.7 billion last week and less than half the record daily trading volume of $9.9 billion set on March 5. BlackRock’s IBIT ETF led with a trading volume of $2 billion, followed by Grayscale’s GBTC with $1 billion and Fidelity’s FBTC with $630 million. Cumulative trading volume for all spot bitcoin ETFs currently stands at $145.8 billion.
BlackRock’s spot bitcoin ETF has captured a 48.7% market share by trading volume, while Grayscale’s higher-fee GBTC fund dropped from a 50.5% market share on January 11 to 25.6% as of yesterday.
Bitcoin Drops Below $64,000, Causing a Spike in Long Liquidations
The reversal in outflows from spot bitcoin ETFs comes as the bitcoin price fell towards the $63,000 level this morning for the first time in nearly two weeks. This decline follows the cryptocurrency reaching an all-time high of $73,836 on March 14. The drop in price has resulted in a spike in long liquidations on centralized exchanges.
Currently, bitcoin is trading at $63,228, down 7% over the past 24 hours and more than 10% over the past week. However, it remains up around 50% year-to-date. The broader crypto market has also experienced a significant decline recently, with the GM30 index down 16% to 137.31 since its peak of 164 on March 14.
Hot Take: Record Outflows for Grayscale’s GBTC ETF Amid Bitcoin Price Decline
Grayscale’s GBTC spot bitcoin ETF saw record daily outflows on Monday, exceeding the previous peak set in January. Despite inflows from BlackRock’s IBIT ETF, GBTC’s outflows resulted in a net outflow for the first time since March. The total net inflows for spot bitcoin ETFs since January 11 now stand at over $12 billion, while assets under management are approaching $56 billion. However, Grayscale’s GBTC fund has seen a significant decline in assets compared to the newborn ETFs. The drop in bitcoin price has led to a slowdown in trading volume for spot bitcoin ETFs and a spike in long liquidations on exchanges.
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