Bitcoin ETF sees net outflows narrow for four consecutive days, Bloomberg analyst: The worst scenario is about to end
Why Didn't Holders Dump GBTC on Bitcoin ETF Debut? Bloomberg ETF Analyst Eric Balchunas suggests that the net outflows of GBTC selling pressure may be related to the scale of bankruptcies.
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Bitcoin ETF Sees Net Outflows for Four Consecutive Days
Data from Farside Investors shows that the net outflows of Bitcoin spot ETF decreased to -$94 million on March 21, with GBTC contributing -$358 million.
The total net outflows for the previous three days were -$154 million, -$326 million, and -$261 million respectively.
The significant increase in net inflows for BlackRock's IBIT is the main reason for the reduction in outflows today.
Here is the ETF data from highest to lowest:
Grayscale GBTC: -$358 million
BlackRock IBIT: $233 million
Bitwise BITB: $12 million
Valkyrie BRRR: $4.7 million
Invesco BTCO: $4.2 million
Franklin EZBC: $3.8 million
Fidelity FBTC: $2.9 million
Ark ARKB: $2 million
Vaneck HODL: $1.8 million
Grayscale GBTC Continues to Experience Selling Pressure
Previously a closed-end fund, Grayscale GBTC requires investors to hold for two years before redemption. This has led to significant selling pressure on GBTC after its transition to an ETF.
Although GBTC saw net outflows on the first day of Bitcoin ETF listing on January 11, this selling pressure is not a one-time event but a gradual outflow. GBTC has yet to see any net inflows.
Why didn't holders immediately sell off GBTC on the first day of Bitcoin ETF listing?
Bloomberg ETF analyst Eric Balchunas suggests that the selling pressure and net outflows of GBTC may be related to the scale of bankruptcies.
Are GBTC Selling Pressure Coming from Bankrupt Institutions?
He points out that the net outflows of GBTC in February were small and random, resembling retail investor behavior, while other large outflows seem to be GBTC being liquidated by bankrupt institutions like Genesis.
However, Eric Balchunas believes that even with GBTC selling pressure, the market is still at a certain level, indicating that the worst-case scenario may be coming to an end and any net outflows from GBTC may have been converted into BTC spot.
He expects that future net outflows from GBTC will come from sporadic retail investors and the outflow situation will be similar to that of February.
