- Total inflows into nine spot Bitcoin ETFs launched in the United States have been rapidly declining over the past few days.
- On Monday, March 18th, the Grayscale Bitcoin ETF (GBTC) recorded its highest-ever outflow, totaling $643 million.
- Bitcoin analyst HODL15Capital notes that following today’s outflows, GBTC has lost 250,600 Bitcoins since the ETF conversion.
Grayscale Investments’ spot Bitcoin ETF faced a massive outflow on March 18th: Could Bitcoin’s price drop further?
Grayscale Bitcoin ETF Bleeding More
Total inflows into nine spot Bitcoin ETFs launched in the United States have been rapidly declining over the past few days, with net inflows recorded at $150 million or less. Meanwhile, outflows from the Grayscale Bitcoin ETF, GBTC, have gained momentum once again.
On Monday, March 18th, the Grayscale Bitcoin ETF, GBTC, recorded its highest-ever outflow, totaling $643 million. This surprisingly translates to 10,000 BTC leaving GBTC’s assets, potentially heading to other fund managers.
Bitcoin analyst HODL15Capital notes that following today’s outflows, GBTC has lost 250,600 Bitcoins since the ETF conversion. The total Bitcoin holdings have dropped from 620K BTC to 368K BTC, indicating a significant 40% decrease. Interestingly, Grayscale recently filed for a Bitcoin mini trust with the U.S. SEC.
Additionally, the analyst notes there’s no cause for concern regarding these activities as they are simply placing today’s outflows. Reportedly, these funds are being transferred to reputable institutions like Bitwise, VanEck, and Fidelity.
BlackRock Bitcoin ETF Gaining Momentum Again
After a period of losses last week, the BlackRock Bitcoin ETF is gaining momentum once again. According to data from Farside investors on Monday, March 18th, the BlackRock Bitcoin ETF recorded an outflow of $451 million. Meanwhile, all other ETFs recorded single-digit inflows, with amounts staying below $10 million.
This indicates that BlackRock may have withdrawn a significant portion from GBTC on Monday. Furthermore, total inflows into Bitcoin ETFs have significantly decreased. During an interview with Bloomberg TV, Grant Engelbart, Vice President and Investment Strategist at Carson Group, noted that advisors typically allocate an average of 3.5% of client household portfolios to just a handful of BTC ETFs.
Renowned Bloomberg ETF Strategist Eric Balchunas sheds light on the latest developments in the global Bitcoin exchange-traded fund (ETF) landscape. With the launch of spot ETFs offering more cost-effective and liquid options in the United States, Bitcoin ETFs in Europe and Canada have experienced outflows.
This trend highlights the competition dynamics within the ETF market, with U.S. ETFs often attracting significant flows at the expense of their counterparts in other regions. According to CoinShares International Ltd., investors have withdrawn a total of $738 million from Bitcoin products on exchanges in Germany, Canada, and Sweden since the beginning of 2024.
