Spot Bitcoin ETFs Cumulative Outflow On a 5-Day Streak of $319M

In recent developments, U.S. Spot Bitcoin ETF products experienced a cumulative outflow of $4.3 million, marking a five-day streak of withdrawals. This notable trend comes ahead of the upcoming Bitcoin mining reward halving. 

As per reports from April 12 to date, spot BTC ETFs have witnessed a total net outflow of over $319 million, with Grayscale GBTC having the highest amount of withdrawals. 

Grayscale Bitcoin Trust Dominates Outflows

Grayscale is still leading the outflows with its higher-fee converted spot Bitcoin ETF dubbed GBTC. As of January 22, blockchain analytic platform Lookonchain reported that Grayscale holds 566,973 BTC, valued at $23.21 billion, BlackRock and Fidelity hold 33,431 BTC ($1.37 billion), and 24,857 BTC ($1.02 billion), respectively, and Bitwise boasts of 10,152 BTC ($415.6 million).

From January till March, more than $2.2 billion has left the ETF as outflows. Some of Grayscale’s BTC holdings are said to have been moved to its custodian Coinbase Prime.

Analysts Still Optimistic About Bitcoin

Notably, the outflow suggests a cautious approach from investors in the lead up to the halving. Despite the recent withdrawals, many analysts still remain optimistic about the future of Bitcoin. The halving event is widely expected to have a long-term positive impact on the cryptocurrency’s value. Investors may also be waiting for clearer regulatory and market conditions before making new commitments to Bitcoin ETFs. 

It’s important to note that Bitcoin’s overall market dynamics can be influenced by a variety of factors beyond halving events, such as macroeconomic trends, regulatory changes, and technological developments. These factors can lead to short-term volatility, but many experts view Bitcoin’s long-term prospects as strong.

Impact of Spot Bitcoin ETFs Approval

Recall that the regulator approved the 19-b applications from prominent entities like VanEck, Fidelity Investments, Valkyrie, BlackRock, Hashdex, Ark 21Shares, WisdomTree, Invesco Galaxy, Grayscale Investments, Bitwise, and Franklin Templeton. 

Interestingly, the approval signals a growing acceptance and recognition of the legitimacy of digital assets in mainstream financial markets. It also leads to an influx of institutional capital into the cryptocurrency market, further legitimizing and mainstreaming digital assets.