Bitcoin spot ETFs in the United States are showing signs of waning momentum after Tuesday marked their largest daily net outflow since launch.
The ten funds suffered cumulative outflows worth $326 million, or 5,117 BTC in total. That’s the second day of outflows in a row, after losing $154.4 million, or 2,293.1 BTC, on Monday.
Outflows came solely from the Grayscale Bitcoin Trust (GBTC) on both days, resulting in a loss of $1.086 billion in Bitcoin this week alone. Monday, in particular, was the fund’s worst-performing day as an ETF, with $642.5 million of assets lost.
While the iShares Bitcoin Trust (IBIT) – Grayscale’s largest competitor – counterbalanced much of GBTC’s selloff with $451.5 million of inflows on Monday, the fund only absorbed $75.2 million on Tuesday – one of its worst performances since launch.
Aside from Fidelity and Bitwise, no other Bitcoin ETF saw net inflows.
Bitcoin ETF Flow – 19 March 2024
All data in. Record net outflow of $326m pic.twitter.com/iBmBiMR74Z
— BitMEX Research (@BitMEXResearch) March 20, 2024
The last time Bitcoin spot ETFs saw two net outflow days in a row was shortly after their launch in January, when traders “sold the news” around their highly anticipated arrival.
At the time, Bitcoin’s price fell from $49,000 on launch day to $39,000 less than two weeks later. Similarly, Bitcoin’s price today has retraced from $74,000 last week to $64,000 at writing time after ETF inflows slowed down on Friday.
On-chain data analysts at Glassnode say that pullbacks of this sort are standard fare for Bitcoin bull markets, as long-term holders start to sell their coins once they’ve accumulated enough paper profits.
Since December, Glassnode claims that over 700,000 BTC has left the hands of long-term
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