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Grayscale’s GBTC cash outflow is expected to continue in the coming weeks despite the recent move to save its clients.
The United States-based spot Bitcoin exchange-traded funds (ETFs) registered a net outflow of about 5,117 Bitcoins worth around $326 million on Tuesday, March 19. The notable outflow from Grayscale Bitcoin Trust (NYSE: GBTC), totaled around 6,957 Bitcoins worth around $443 million, significantly outweighed the small cash inflows to the other spot BTC ETFs.
Moreover, the total cash inflows to the US-based spot Bitcoin ETFs came to about $117.3 million.
Whereby BlackRock Inc (NYSE: BLK)-backed iShares Bitcoin Trust (NASDAQ: IBIT) registered a total inflow of about 1,180.1 Bitcoins, worth around $75.2 million, on Tuesday.
The Fidelity Wise Origin Bitcoin Fund (FBTC) reported an inflow of 621.2 Bitcoins, worth around $39.6 million.
The ARK 21Shares Bitcoin ETF (ARKB) reported an inflow of 38.8 Bitcoins, worth around $2.5 million. The rest of the US-based spot Bitcoin ETFs registered did not register any inflow or outflow on Tuesday.
Grayscale’s GBTC to Bleeds to Flatline
Grayscale’s GBTC has recorded a total outflow of about 256,204 Bitcoins, worth around $12.885 billion, since the listing and trading approval on January 11. Although the overall GBTC outflow has significantly declined, it is evident its clients are fleeing to other spot Bitcoin ETF issuers with lower sponsee fees.
Notably, GBTC has been offering its services at a sponsor fee of 1.5 percent compared to the rest which is below 0.3 percent. Currently, the GBTC holds about 369,520 Bitcoins, worth around $23.29 billion, which is closely followed by IBIT with around $15.4 billion.
Bitcoin ETF Flow – 19 March 2024
All data in. Record net outflow of $326m pic.twitter.com/iBmBiMR74Z
— BitMEX Research (@BitMEXResearch) March 20, 2024
Grayscale’s GBTC cash outflow is expected to continue in the coming weeks despite the recent move to save its clients. Earlier this week, Grayscale filed with the United States Securities and Exchange Commission (SEC) to launch a GBTC spinoff dubbed the Grayscale Bitcoin Mini Trust (BTC) with a competitive fee.
The launch of Grayscale Bitcoin Mini Trust is expected to be the end of the GBTC that has existed over the past years.
Market Implications
The notable cash flow fluctuations of the US-based spot Bitcoin ETF have coincided with the ongoing cryptocurrency correction that pushed Bitcoin price below $61K. After reaching a new all-time high of around $74K last week, Bitcoin’s price is currently trapped in a healthy market correction.
The ongoing crypto correction that has resulted in heavy liquidations is expected to yield a fresh bullish wave in the near term. Moreover, the fourth Bitcoin halving is about 31 days from happening, which will further reduce the supply amid the ongoing heightened demand.
