- U.S. Bitcoin ETFs experienced a significant recovery after a $156 million outflow last week.
- Grayscale’s GBTC saw inflows for two consecutive days as the market conditions improved.
- The average purchase price of these ETFs since their launch is estimated to be US$62,200 per bitcoin.
After a significant $156 million outflow last week, U.S. Bitcoin ETFs have shown signs of recovery, with Grayscale’s GBTC witnessing inflows for two consecutive days.
U.S. Bitcoin ETFs Recover from Major Outflows
According to a recent CoinShares report, U.S. Bitcoin ETFs saw a significant $156 million outflow last week as the BTC price dropped below the average buying price of the ETF issuers. This drop may have triggered automatic sell orders, contributing to the outflow. However, the market has shown signs of recovery, with Grayscale’s GBTC experiencing inflows for two consecutive days.
Grayscale’s GBTC Sees Inflows as Market Improves
As the market sentiment improved and BTC recovered from $56.5K to $65K, Grayscale’s GBTC saw its first inflow of $63.9 million last Friday, followed by another inflow of $3.9 million on Monday. This unexpected turn of events caught analysts by surprise, with Bloomberg analyst Eric Balchunas noting that the extensive marketing budget of Grayscale, combined with the recent rebound, could be the reason behind the inflows.
Investor Appetite Fuels Recovery
The recovery in the market has further fueled investor appetite, with net inflows hitting $378.2 million last Friday. The U.S. BTC ETFs remained green on Monday, recording another net inflow of $217 million. At the time of writing, BTC was back in its previous price consolidation range of $60K—$71K but slipped below $64K after grabbing liquidity at $65.5K. If BTC’s recovery extends to the range-high, U.S. BTC ETFs could reverse last week’s $156 million outflows.
Conclusion
In conclusion, despite the significant outflows experienced last week, U.S. Bitcoin ETFs have shown signs of recovery, with Grayscale’s GBTC witnessing inflows for two consecutive days. The recovery in the market and the improved investor appetite could potentially reverse last week’s outflows if the BTC price continues to recover.
