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Grayscale Bitcoin Trust Records Lower Outflows Amid ETF Launch
Grayscale Bitcoin Trust (GBTC) has recently experienced a significant decrease in outflows for the first time since the launch of spot Bitcoin ETFs on April 2. According to Coinglass data, ARK 21Shares (ARKB) posted outflows amounting to $87.5 million, causing GBTC to record the lowest outflows since March 12 at $82 million. As of press time, the data for other ETFs such as IBIT and FBTC was not publicly available.
GBTC Outflow Trends
The current drop in outflows for GBTC is noteworthy due to the fund’s history of consistently high outflows. Long-term data reveals that GBTC has seen $15 billion in net outflows since its inception in January, making it the only spot Bitcoin ETF with negative net flows. In contrast, the spot Bitcoin market has seen positive net inflows, with the Newborn Nine collectively attracting over $12 billion in net inflows since their launch.
The recent influx of funds has been particularly significant, with spot Bitcoin ETFs recording over $800 million in inflows during the last week of March. Bloomberg ETF analyst Eric Balchunas reported that spot Bitcoin ETF trading volumes reached $111 billion in March, a striking three times the levels seen in January and February.
Interest in Bitcoin ETFs
BlackRock and Fidelity’s Bitcoin ETFs, IBIT and FBTC, have seen a surge in popularity, garnering substantial market interest within the first three months of their launch. Outshining many other funds offered by the two financial giants, IBIT and FBTC have attracted unprecedented levels of investment.
IBIT has accounted for over half of BlackRock’s annual net inflows, while FBTC has represented 70% of Fidelity’s total inflows. This trend underscores the increasing appeal of Bitcoin among traditional investors. Notably, IBIT has experienced faster growth than any other ETF in history.
Both IBIT and FBTC have managed to sustain continuous cash inflows for 52 consecutive days, a rare feat in the ETF realm. This achievement signals robust investor confidence and places them at the forefront of ETFs with sustained investor interest. Despite market downturns, data indicates that investors are strategically investing in these Bitcoin ETFs, showcasing a sophisticated and resilient investor base.
This strategic investment approach reflects the investor community’s patience and confidence in Bitcoin ETFs, even amidst challenging market conditions. The data suggests that ETF investors are maintaining their long-term perspective and are undeterred by short-term price fluctuations, highlighting a mature and calculated investment strategy.
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