Flow to this week’s U.S. integrated spot bitcoin BTC
-0.25%
Exchange traded funds (ETFs) turned positive on Wednesday, surpassing the net outflows witnessed on Monday.
Net inflows worth $113.5 million on Wednesday, following $40.3 million added on Tuesday, were enough to surpass the $87.5 million net outflows registered on Monday, according to CoinGlass data.
Fidelity’s FBTC spot Bitcoin ETF led yesterday’s inflows, adding $116.7 million, while BlackRock’s usually dominant IBIT fund came in second with $42 million. Bitwise’s BITB product came in third with $23 million in inflows Wednesday, with the remaining ETFs adding less than $4 million each. Total net inflows now stand at $12.2 billion.
Fidelity’s FBTC is currently approaching 150,000 BTC ($10 billion) under management. BlackRock’s IBIT leads among new Bitcoin ETFs with over 256,000 BTC ($17 billion).
Meanwhile, Grayscale’s converted GBTC fund fell 47%, from about 619,000 BTC to 328,000 BTC ($22 billion), per CoinGlass. GBTC’s current 1.5% fee compares to FBTC and IBIT’s 0.25%.
“Stock mutual funds have seen $3.5 trillion in outflows over the past decade, but their assets have grown by $6 trillion to $14 trillion,” said Eric Balchunas, Bloomberg ETF analyst. “This is probably the best example of a ‘bull market subsidy’ and why GBTC has no incentive to lower fees despite outflows/complaints.”
Grayscale’s GBTC fund outflow slows
The $302.6 million outflow to GBTC on Monday contributed significantly to the total net outflow registered by the integrated spot Bitcoin ETF that day. “Frankly, it was higher than I expected,” Bloomberg ETF analyst James Seyffart wrote at the time. “I thought it would have slowed down by now.”
However, markets were closed on Good Friday, which could have affected Monday’s figures, with GBTC’s outflows slowing to $81.9 million on Tuesday and $75.1 million yesterday.
A Coinbase report earlier this month suggested that Genesis Global Holdco LLC’s possible sale of 35.9 million shares of GBTC stock, worth about $2 billion, may have sparked recent GBTC selling pressure.
Outflows from Grayscale’s high-fee GBTC fund peaked at $642.5 million on March 18 and continued to average about $300 million per day until falling below $100 million on Tuesday. GBTC’s total outflow is $15.2 billion.
“I’ll make a phone call. I think there is a good chance that GBTC stock will be sold off Gemini/Genesis due to the Genesis bankruptcy,” Seyffart said yesterday.
Spot Bitcoin ETF daily flows and volume continue to decline.
According to The Block’s, outflows from Grayscale GBTC appear to be slowing, but spot Bitcoin ETFs have fallen since peaking with daily net inflows of $1.05 billion on March 12 as Bitcoin reached an all-time high of $73,836. The same goes for the overall flow. Data dashboard.
March was also a big month for spot Bitcoin ETFs by trading volume, hitting $111 billion, nearly three times February’s total. However, after reaching a record $9.9 billion on March 5, daily trading volume also fell as Bitcoin broke its previous cycle high of about $69,000 for the first time, with $2.3 billion traded on Wednesday.
Daily trading volumes remain above the average levels observed in January and February, but the acceleration has slowed, as evidenced by a decline in the cumulative volume chart for the Spot Bitcoin ETF. Total trading volume currently stands at $190 billion.
According to The Block’s price page, Bitcoin is currently trading at $66,234. The largest cryptocurrency by market capitalization was flat over the past 24 hours. Bitcoin price fell 6% last week but remains up 57% so far.
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