Spot Bitcoin ETF Flows Turn Negative Again as Grayscale Sees Over $300M in Outflows

Spot Bitcoin (BTC) exchange-traded funds (ETFs) in the United States have experienced a reversal in investor sentiment, seeing net outflows following four consecutive days of inflows. 

The significant contributor to the shift was Grayscale’s GBTC spot ETF, which recorded a single-day net outflow surpassing $303 million. 

However, other Bitcoin ETFs saw net inflows during this period, with Bitwise Bitcoin ETF leading the way with a net inflow exceeding $40 million, followed by BlackRock’s iShares Bitcoin Trust with a net inflow of over $21 million, as per data from Farside.

Spot Bitcoin ETFs See $224 Million in Net Outflows

When considering the collective impact, the total net outflow across spot Bitcoin ETFs amounted to nearly $224 million. 

It is worth noting that over the past week, nearly $1 billion flowed into U.S.-based Bitcoin ETFs, with BlackRock’s offering capturing the majority of the funds.

Although Grayscale’s GBTC experienced outflows, HODL15Capital highlighted that the new ETFs acquired 520,544 BTC in three months, resulting in a net increase of approximately 220,000 BTC.

On the specific day, BlackRock and Fidelity had relatively low inflows, with $21.3 million and $6.3 million, respectively.

4/8 net negative due to $303m GBTC outflows.$GBTC had 620,000 #Bitcoin at the time of the ETF conversion and has lost 300,742 BTC since.

On the flip side, the new ETFs bought 520,544 Bitcoin in 3 months, for a net increase of ~220,000 BTC.

— HODL15Capital (@HODL15Capital) April 9, 2024

Among the ETFs, the Bitwise BITB ETF emerged as the leading fund, attracting an inflow of $40.3 million. 

ARK 21Shares’ ARKB secured the third position with a $9.3 million inflow. However, overall ETF inflow figures were relatively weak.

Eric Balchunas, an ETF analyst at Bloomberg, provided a broader perspective, noting that IBIT (BlackRock) and FBTC (Fidelity) had received cash for 59 consecutive days and now rank among the top 20 all-time.

Interestingly, these outflows occurred as Bitcoin prices reached their highest level in over three weeks, briefly touching $72,500 in late trading on April 8.

However, the asset experienced a slight correction during the Asian trading session on Tuesday, trading at approximately $71,181 at the time of writing.

Digital Asset Products Attract $646 Million

The recent outflows come as investors poured a total of $646 million into crypto products, pushing the year-to-date inflows to an unprecedented $13.8 billion and surpassing the previous year’s total of $10.6 billion. 

Bitcoin was the primary focus for investors, with inflows totaling $663 million. 

However, short-bitcoin investment products saw outflows for the third consecutive week, amounting to $9.5 million, indicating a minor capitulation among bearish investors.

Meanwhile, industry executives, such as Ripple CEO Brad Garlinghouse, remain optimistic. 

Garlinghouse predicts that the total market value of cryptocurrencies will double this year, largely driven by spot ETFs and Bitcoin halving. 

He believes that the introduction of real institutional money through ETFs is a significant factor contributing to this positive outlook.

“I’m very optimistic. I think the macro trends, the big picture things like the ETFs, they’re driving for the first time real institutional money,” he told CNBC on April 7.

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