Bitcoin Spot ETFs Witness Highest Single-Day Outflows as GBTC Continues to Bleed

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By BitcoinWiki News

Key Takeaways:

– Bitcoin spot ETFs experience significant net outflow of $159 million, largest single-day total net outflow since launch
– Grayscale ETF (GBTC) sees largest net outflows, $429 million leaving the fund
– All other ETFs, excluding Grayscale, experience net inflows of $270 million
– BlackRock’s IBIT fund sees inflows totaling $66.16 million, Fidelity’s FBTC sees over $125 million in inflows
– Ark Invest, Bitwise, and Invesco see inflows of approximately $20 million each
– GBTC outflows show a decline for two consecutive days, lowest since introduction of Bitcoin spot ETFs
– Bloomber analyst Eric Balchunas notes decrease in outflows but substantial liquidations remain
– GBTC loses 106,092 BTC over nine trading days, approx. $4.4 billion in value
– Grayscale CEO predicts most of 11 spot Bitcoin ETFs approved by SEC are likely to fail, expects only “two or three” to achieve critical mass
– Lower-fee Bitcoin spot ETFs expected to attract more inflows in short term, JPMorgan analysts predict success will hinge on fees and liquidity, expect significant outflows from GBTC
– Speculative investors may contribute to GBTC liquidation, leading to approximately $3 billion exiting GBTC and flowing into newly launched ETFs
– Analysts anticipate larger outflows of $5-10 billion if GBTC fails to reduce fees to 0.25% level

Title: Bitcoin Spot ETFs Experience Significant Net Outflow

1. Overview
Bitcoin spot ETFs have experienced a significant net outflow of $159 million, marking the largest single-day total net outflow since their launch. Data from analytics platform Alpha shows that out of all the spot Bitcoin ETFs, Grayscale ETF (GBTC) has seen the most substantial net outflows, with $429 million leaving the fund over the past day alone. Conversely, all other ETFs, excluding Grayscale, experienced net inflows of $270 million.

2. GBTC Outflows Start to Decline
There has been a decline in the outflow of funds from Grayscale Bitcoin Trust (GBTC) for two consecutive days. This decrease represents the lowest outflow since the introduction of Bitcoin spot ETFs in the United States. Bloomberg analyst Eric Balchunas noted that while GBTC outflows are showing a downward trend, the liquidations remain substantial.

3. Lower-Fee Bitcoin Spot ETFs to Attract More Inflows
Aurelie Barthere, Principal Research Analyst at Nansen, expects lower-fee ETFs to attract more inflows in the short term. She predicts that the competitive landscape among Bitcoin spot ETF providers will be shaped by factors like reputation, size, existing footprint, and management fees.

4. Predictions and Analysis
JPMorgan analysts have predicted that the success of the newly created ETFs will hinge on fees and liquidity. Given the high 1.5% fees associated with GBTC, they expect significant outflows from this Bitcoin trust. There are also predictions of even larger outflows of $5-$10 billion if GBTC fails to reduce its fees to the 0.25% level set by issuers like BlackRock.

5. Grayscale CEO’s Perspective
Grayscale CEO Michael Sonnenshein believes that most of the 11 spot Bitcoin ETFs approved by the U.S. Securities and Exchange Commission (SEC) are likely to fail, suggesting that only “two or three exchange-traded funds will probably achieve some critical mass” in the market.

This summary discusses the significant net outflow from Bitcoin spot ETFs, the decline in outflows from GBTC, predictions about lower-fee ETFs attracting more inflows, and the perspective of Grayscale CEO Michael Sonnenshein. It also includes insight from JPMorgan analysts about the impact of fees and liquidity on the success of newly created ETFs.

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