Important point:
A total of $742 million has been withdrawn from Bitcoin ETFs in the last three days.
The negative trend has been led by Grayscale’s GBTC, which saw an outflow of $386.6 million on Wednesday.
However, the U.S. Bitcoin ETF has received net inflows of $11.42 billion since its launch.
What Is the Grayscale Bitcoin Trust (GBTC)?
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that makes Bitcoin available to individual and institutional investors. Shares are a more conventional investment that GBTC provides.
According to the Spot on Chain Post
Amid the current decline in Bitcoin, funds allocated to Bitcoin spot exchange-traded funds (ETFs) have experienced negative inflows for the third consecutive day. Market tracker Spot on Chain highlighted the negative flow trend of Bitcoin ETFs in a post on X. The statement said that over the past three days, the crypto ETF has suffered a net loss of $742 million.
Based on available data, the Bitcoin ETF saw a net negative movement of $262 million yesterday, March 20. Notably, Grayscale’s unwavering withdrawals from GBTC were the main reason for the negative flow.
Notably, Grayscale recorded negative inflows of $386.6 million on Wednesday. This number offsets the positive funds reported for the vast majority, including ETFs from Bitwise, BlackRock, Fidelity, and Ark Invest.
Grayscale’s Bitcoin Spot ETF has shown persistently negative outflows since the Bitcoin Spot ETF was approved in January. According to recent estimates, Grayscale’s ETF has lost more than $12 billion due to its high fees.
Even though this pattern has continued for more than three months, Grayscale’s negative inflows have been offset by inflows into other Bitcoin ETFs. As a result, since their launch, U.S.-listed cryptocurrency ETFs have had cumulative positive inflows of more than $11.42 billion.
Due to the sharp fluctuations in the price of Bitcoin, the amount of money flowing into these ETFs has decreased dramatically over the past week. For example, when Bitcoin fell to around $65k on March 13, cryptocurrency investment products saw a staggering 87% decline. The positive flow in the gap decreased over time and reached negative numbers on Monday.
