Bitcoin ETF Exited for Five Days, But BTC Price Shows Signs of Comeback
This week, all nine spot Bitcoin ETFs witnessed net outflows over five days of trading. This was largely due to massive outflows from the Grayscale Bitcoin ETF GBTC, totaling $14 billion since launch in January 2024.
Bitcoin ETF Outflows Continue
On Friday, March 22, Bitcoin spot ETFs experienced a total net outflow of $51.6 million on March 22. Additionally, Grayscale ETF GBTC recorded a single-day net outflow of $169 million, according to data from Farside Investors.
In contrast, BlackRock ETF IBIT observed single-day net inflows of just $18.89 million, marking two-day record lows. Meanwhile, the Fidelity ETF FBTC saw single-day net inflows of just $18.13 million. As GBTc outflows soar, BlackRock retains the other advantage to mitigate the overall negative impact.
Amid this week’s net outflow, Bitcoin price has come under pressure. At the time of writing, BTC is trading at $64,051, down 3.77%, with a market cap of $1.259 trillion. Even though Bitcoin’s price has declined, BlackRock’s ongoing flow into the Spot Bitcoin ETF remains positive, according to crypto analyst Michael van de Poppe. This points to ongoing corporate acquisition activity. This significant trend shows that we are still far from the end of this market cycle.
BTC supply shock
Amid Bitcoin’s effort to recover from its longest decline in more than five months, traders are turning their attention to the complexities involved in keeping BTC in cold storage through ETFs and using various borrowing options.
Bitcoin’s trend on exchanges continues to decline, with Coinbase Pro witnessing the withdrawal of 14.7 thousand Bitcoins in the last 24 hours alone. A total of 57.4 thousand Bitcoins were withdrawn from the platform in the last 30 days.
According to Poppe, the bearish trend continues to be valid for Bitcoin. It predicts that we are nearing the bottom, have probably already reached it, or will reach it by next week, leading to a sideways phase of movement. The decrease in volatility is seen as a positive indicator.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
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