Monday witnessed a notable shift in the Bitcoin ETF market dynamics in the United States, as the sector shifted back to net outflows after a week of consistent gains. Grayscale’s GBTC fund experienced a significant reduction, with $302.6 million moving out, while Ark Invest 21Shares’ ARKB saw its initial daily outflows of $300,000.
This change in tide comes despite the $860 million net inflows recorded last week across U.S. spot Bitcoin ETFs. Even a substantial $165.9 million input into BlackRock’s IBIT couldn’t counterbalance the losses, resulting in an overall net outflow of $85.7 million on the day, as per CoinGlass data.
Other funds like Fidelity’s FBTC and Invesco’s BTCO saw more modest inflows, but the aggregate movement still led to a net negative.
Continued Pressure on Grayscale’s GBTC
Grayscale’s GBTC has been under increased selling pressure, with total outflows surpassing the $15 billion mark since January. This ongoing situation may have been exacerbated by Genesis Global Holdco LLC’s rumoured plans to offload many GBTC shares.
Despite a temporary slowdown in outflows towards the end of March, Monday’s figures suggest a resurgence in selling activity.
The overall trading volume for U.S. spot Bitcoin ETFs also reflected a downturn, totaling $3.03 billion on Monday, led predominantly by BlackRock’s IBIT. This decrease in trading activity aligns with a broader trend of declining volumes since early March, despite the high trading peaks experienced when Bitcoin crossed previous all-time highs.Â
As the market navigates through these fluctuations, the recent outflows and trading volume shifts highlight the volatile nature of cryptocurrency investments and the changing investor sentiments within the ETF landscape.
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