Grayscale Bitcoin ETF Outflows Continue as Newborn 9 See Inflows
The Grayscale Bitcoin ETF (GBTC) continues to experience significant outflows, with $515 million leaving the fund on Tuesday. This brings the total outflows to $3.96 billion. Meanwhile, the “newborn 9” spot Bitcoin ETFs saw inflows of $407 million, resulting in a net outflow of $106 million across all 10 ETFs.
A breakdown by BitMEX Research reveals that Blackrock leads with an inflow of $1,849.5 million, followed by Fidelity at $1,599.1 million and Bitwise at $518.3 million.
Over the past eight days, there have been four days of net inflows and four days of net outflows among all 10 ETFs. The total inflow for all ETFs is 21,362.5 BTC, while GBTC alone has seen an outflow of 98,296 BTC.
Potential Signs of Easing Selling Pressure on GBTC
BitMEX Research suggests that the recent decrease in GBTC outflows and a reduction in the discount to NAV could indicate a possible easing of selling pressure on GBTC.
When Will Grayscale’s Bitcoin Outflows End?
Analyst Eric Balchunas conducted a poll to gauge market expectations regarding the future scale of GBTC’s outflows. The poll results show that opinions are divided, with 21.5% expecting under 20% outflows, 48.7% expecting 35-50%, 16.4% expecting 50-80%, and 13.4% expecting over 80%. Only 42 trading days are left until GBTC reaches zero BTC if outflows continue at the current pace.
Market Volume and Composition
Trading volume for GBTC was at its lowest since launch, suggesting a potential decrease in outflows. Crypto analyst Fabian D. believes that if this downtrend continues, it could push the market valuation back above $40,000 as investors recognize the deceleration in the rate of change. Additionally, the capital withdrawing from GBTC consists mainly of short-term, weak holders, which is shifting the market composition towards the “newborn 9” ETFs. This shift may fortify the market’s foundation for a more stable future.
Bitcoin Price and Resistance Zone
At the time of writing, BTC is trading at $40,066, below the key resistance zone at $40,200 to reclaim the previous trading range.
Hot Take: Grayscale Bitcoin ETF Outflows Continue Amid Uncertainty
The continued outflows from Grayscale’s Bitcoin ETF raise questions about when they will end and how significant they will be. Market dynamics are shifting as inflows and outflows alternate over a period of eight days. The decreasing volume and potential easing of selling pressure on GBTC offer some hope for stability. However, opinions on the future scale of outflows vary widely. The market will be closely watching to see if these trends continue and how they impact Bitcoin’s price and overall market composition.
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