GBTC Outflows Reach $600 Million, Second Largest Outflow Day Since January
Grayscale’s spot Bitcoin exchange-traded fund (ETF) (GBTC) experienced a slow trading day on Thursday, with net outflows of almost $600 million. This marks the second largest outflow day since January 11, 2024. The total GBTC outflows since January 11 now stand at $8,406.3 million.
Ten Spot Bitcoin ETFs See Record Inflows
In contrast to GBTC’s outflows, the ten spot Bitcoin exchange-traded funds (ETFs) saw a record inflow of $673.4 million on Wednesday. This surge in inflows was primarily driven by BlackRock, which received $612.1 million in inflows. As a result, the total positive flow into spot Bitcoin ETFs on Thursday amounted to $92 million.
Possible Reasons for GBTC Outflows
The significant outflows from GBTC could be attributed to Genesis, a bankrupt crypto lender that has been approved to sell its GBTC shares. Bloomberg analyst James Seyffart speculated that some of the $600 million outflow could be from Genesis.
Bitcoin Price Correction and ETF Momentum
Bitcoin price reached its highest point since November 2021, surpassing $64,000. However, during the US session, the price experienced a slight bearish correction and dropped to $60,750. Despite this correction, Bitcoin still recorded a 0.70% increase over the last 24 hours.
On the other hand, Bitcoin spot ETFs continue to gain momentum:
- BlackRock’s IBIT achieved a personal record with $3.3 billion in trading volume over three consecutive days.
- Fidelity’s spot Bitcoin ETF also doubled its previous record with $1.4 billion in trading volume.
Wall Street Banks Show Interest in Crypto ETFs and ETPs
Morgan Stanley is reportedly considering adding spot Bitcoin ETFs to its brokerage platform. The bank is currently conducting due diligence on this matter, indicating Wall Street’s growing interest in crypto.
Hot Take: GBTC Outflows and Record Inflows for Bitcoin ETFs
The GBTC saw a significant outflow of almost $600 million, marking the second largest outflow day since January. Meanwhile, ten spot Bitcoin ETFs experienced a record inflow of $673.4 million, primarily driven by BlackRock. This surge in inflows offset the massive outflows from GBTC, resulting in a total positive flow into spot Bitcoin ETFs of $92 million.
Despite the correction in Bitcoin price, it remains at a high level above $60,000. Additionally, Bitcoin spot ETFs continue to gain momentum, with both BlackRock’s IBIT and Fidelity’s spot Bitcoin ETF achieving new trading volume records.
The interest from Wall Street banks, such as Morgan Stanley, in exploring crypto ETFs and ETPs further demonstrates the growing acceptance and integration of cryptocurrencies into traditional financial institutions.
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