Grayscale’s GBTC Leads Outflows from US Spot Bitcoin ETFs
In the recent wave of outflows from US spot Bitcoin ETFs, Grayscale’s GBTC has dominated with a total daily net outflow of $174.45 million on Monday. This marked a week of consecutive negative flows, with GBTC alone accounting for $90 million of the outflows.
No Inflows Across Spot Bitcoin ETFs
- Interestingly, BlackRock’s IBIT did not record any flows for the day.
- Spot Bitcoin ETFs by Valkyrie, WisdomTree, and Hashdex also recorded zero activity.
- Data compiled by SosoValue showed that none of the funds recorded inflows.
Following Grayscale, Fidelity’s FBTC and Franklin Templeton’s EZBC saw $35 million and $21 million in net outflows on June 24th. VanEck’s HODL saw a $10 million outflow, and Bitwise’s BITB recorded $8 million. Additionally, Ark Invest and 21Shares’ ARKB fund had $7 million outflows, followed by Invesco and Galaxy Digital’s BTCO with outflows of $2 million.
GBTC’s Continued Outflows
Ever since its conversion in mid-January, GBTC has seen $18 billion in outflows. In contrast, other ETFs have attracted significant funds. IBIT leads with $18 billion in inflows over the past six months. FBTC follows with $9 billion in inflows, and ARKB and BITB with $2 billion each.
As bitcoin hovers near $61.2k, experts warn that a downfall could intensify more outflows from the ETFs.
Potential Continued Outflows
Bianco Research President and Founder, Jim Bianco, noted that more than $14 billion has flowed into spot Bitcoin ETFs since January 11, with the average purchase price around $60.6k. Bianco predicts that if BTC stays below $60.5k, more outflows are expected.
“Should BTC prices hold below $60.5k, I expect an acceleration of outflows. These instruments are dominated by retail Degens, not wealth managers or institutional players. Such players are short-term momentum-driven and bail (panic) when losses occur.”
Hot Take: What This Means for Crypto Investors
As a crypto investor, it is crucial to monitor the outflows from popular Bitcoin ETFs like Grayscale’s GBTC and others. Understanding the potential impact of price movements on these ETFs can help you make informed decisions regarding your investments in the cryptocurrency market.
Stay informed about the latest trends and dynamics in the crypto space to navigate potential outflows and inflows effectively. Consider diversifying your crypto portfolio to mitigate risks associated with significant outflows from specific ETFs.
Sources:
– SosoValue
– Bianco Research
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