This week’s feeds to the combined US spot Bitcoin BTC
+0.35%
exchange-traded funds turned positive on Wednesday, eclipsing the net outflows seen on Monday.
Wednesday’s $113.5 million in net inflows, after the $40.3 million added on Tuesday, was enough to surpass the $87.5 million in net outflows recorded on Monday, according to CoinGlass. data.
Fidelity’s FBTC spot Bitcoin ETF led yesterday’s inflows, adding $116.7 million, with BlackRock’s usually dominant IBIT fund second, bringing in $42 million. Bitwise’s BITB product came in third on Wednesday with inflows of $23 million, with the remaining ETFs adding less than $4 million each. Total net inflows currently stand at $12.2 billion.
Fidelity’s FBTC is now approaching 150,000 BTC ($10 billion) under management. BlackRock’s IBIT leads among new spot Bitcoin ETFs with over 256,000 BTC ($17 billion).
Meanwhile, Grayscale’s converted GBTC fund fell 47%, from around 619,000 BTC to 328,000 BTC ($22 billion), per CoinGlass. GBTC’s current 1.5% fee compares to 0.25% for FBTC and IBIT.
“Equity mutual funds saw $3.5 trillion in outflows over the past 10 years, but their assets jumped $6 trillion to $14 trillion as stocks rose by 280% during this period,” said Eric Balchunas, an analyst at Bloomberg ETF. said. “This is probably the best example of ‘bull market subsidy’ and the reason why GBTC is probably not motivated to reduce its fees despite the exits/complaints.”
Outflows from Grayscale’s GBTC fund slow
Outflows of $302.6 million for GBTC on Monday contributed significantly to the total net outflow experienced by the Bitcoin spot ETFs combined that day. “Honestly, higher than I expected,” James Seyffart, analyst at Bloomberg ETF. wrote at the time. “I thought it would have slowed down by now.”
However, markets were closed on Good Friday, which could have impacted Monday’s figure, and GBTC outflows subsequently slowed to $81.9 million on Tuesday and then to $75.1 million yesterday. .
Earlier this month, a Coinbase report suggested that Genesis Global Holdco LLC’s potential sale of 35.9 million GBTC shares, valued at approximately $2 billion, could have caused recent selling pressure in GBTC.
Outflows from Grayscale’s higher-fee GBTC fund peaked at $642.5 million on March 18, averaging consistently around $300 million per day until falling below $100 million dollars on Tuesday. Total outflows for GBTC are $15.2 billion.
“I’ll make a call. I *think* we are probably selling Gemini/Genesis due to Genesis going bankrupt for GBTC stock,” Seyffart said yesterday.
Spot Bitcoin ETF Daily Flows and Volumes Continue to Decline
Although Grayscale’s GBTC outflows appear to be slowing, so have overall spot Bitcoin ETF flows since peaking at a net daily inflow of $1.05 billion on March 12, as bitcoin neared its latest all-time high of $73,836, according to The Block’s data dashboard.
March was also a record month for spot Bitcoin ETFs in terms of trading volume, nearly tripling February’s total to $111 billion. However, after hitting a record high of $9.9 billion on March 5, as bitcoin surpassed its previous cycle high of around $69,000 for the first time, daily volume also declined, generating 2.3 billion dollars in transactions on Wednesday.
Although daily trading volumes remain above the average levels seen in January and February, the decline is also demonstrated by the cumulative volume chart for spot Bitcoin ETFs, as the rate of acceleration slows. The total volume now stands at $190 billion.
Bitcoin is currently trading at $66,234, according to The Block’s price page. The largest cryptocurrency by market capitalization has been trading flat over the past 24 hours. The price of Bitcoin has fallen 6% over the past week, but remains up 57% year to date.
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