Bitcoin ETFs Face $76M Outflow Despite Positive Spot Market, Seyffart Reports
Summary:
Bitcoin's spot exchange-traded funds (ETFs) saw a net outflow of $76 million on their seventh trading day, according to Bloomberg ETF analyst James Seyffart. Despite these outflows, Seyffart asserted overall positive flows for spot Bitcoin ETFs. The recent outflows are largely due to substantial selling from FTX estate. With fluctuating figures, Bitcoin's value has dropped significantly since ten spot ETFs were approved earlier this month.
Bitcoin's spot exchange-traded funds (ETFs) experienced a net outflow of $76 million on their seventh day of trading, as reported by Bloomberg ETF analyst James Seyffart. Seyffart's January 23rd commentary on the "Cointucky Derby" of Bitcoin ETFs indicated a rough day, with Grayscale incurring the most substantial net outflows. He also confirmed that BlackRock logged its third-largest influx of $272 million, although the day witnessed $76 million in total net outflows.
Outflows totaled $640 million for the day and have shown an increase rather than a decline. The largest outflow so far for GBTC is recorded, with the total reaching $3.45 billion, Seyffart added. However, he informed Cointelegraph that the overall flow into spot Bitcoin ETFs was still positive. With BlackRock recording its third highest day of positive flows, they achieved total daily inflows of $272 million. The net amount exceeding $1.1 billion has flowed into spot bitcoin ETFs, even including the GBTC outflows, he proclaimed. Despite the continuous outflows from GBTC, Seyffart expects the GBTC-driven sell-off to abate in the next two weeks.
Grayscale's GBTC fund, recently transitioned, has seen substantial outflows majorly due to hefty sales from the FTX estate. As per a January 22 report, FTX estate had dumped about two-thirds of its 22.8 million GBTC shares by that date, accounting for approximately $600 million out of the $3.4 billion in net outflows related to GBTC.
Bitcoin's value has suffered a sharp drop post-approval of ten spot ETFs on January 10. It has fallen from $49,100 to as low as $39,500 on January 23. At present, Bitcoin is stable slightly above the $40,000 mark, according to TradingView data. The drop in Bitcoin's price coincides with a sharp decrease in open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME), indicating reduced enthusiasm among institutional investors for leveraged exposure to Bitcoin. Data from CoinGlass shows a significant plunge in open interest on CME from nearly a record high of $6.4 billion on January 12 to $4.4 billion at present.
Published At
1/23/2024 8:54:22 AM
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