Record Bitcoin ETF Outflows at Grayscale, but Future Shows Promise
Summary:
Grayscale, a prominent crypto asset manager, witnessed a record outflow of more than $640 million from its spot Bitcoin ETF on March 18, the most significant since its inception on Jan. 11. On the same day, Fidelity's Bitcoin ETF inflows plummeted to a mere $5.9 million, its lowest ever. Despite the current downswing, Carlson Group's Vice President, Grant Englebart, and ETF analyst Eric Balchunas both expressed optimism about the future inflows into Bitcoin ETFs. This outlook is further bolstered by the considerable amount of Bitcoin remaining on GBTC's books, indicating a possibility for a long-term bullish forecast on Bitcoin ETF flows.
In an unprecedented move, Grayscale, a leading crypto asset manager, experienced more than $640 million Bitcoin (BTC) liquidation from its spot Bitcoin ETF on March 18. This outflow marks the heftiest since the inception of its spot ETF on January 11. A staggering $642.5 million was the recorded outflow total on the said date. Meanwhile, Fidelity, the holder of the second largest fund, saw a plunge in its Bitcoin ETF inflows to a bare $5.9 million, setting the record for the lowest in its history, as per Farside Investors' data. Grayscale Bitcoin ETF recorded the highest singular day dip. Source: FarSide. Currently, Bitcoin is valued at $65,875, reflecting a 10.5% decrease from its recent peak of $73,797 recorded on March 14, based on CoinGecko data. The shrinkage in Bitcoin ETF flows, the impending halving event, and the Federal Reserve's FOMC meeting set for March 20th have all been cited as contributors to the recent slump in Bitcoin's price. Contrarily, several experts predict a favourable outcome for Bitcoin ETF flows. Carlson Group's vice president, Grant Englebart, conveyed to Bloomberg TV that only a small fraction of their consultants had witnessed a shift of clients' funds to Bitcoin ETFs, indicating that from that shift, there was an average allocation rate of 3.5% from the overall funds. Commenting on this, X Bloomberg ETF analyst Eric Balchunas stated that Englebart’s insights resonate with feedback received from Bitcoin ETF fund issuers — only a select group of early adopters have made significant allocations to Bitcoin ETFs. Balchunas inferred that merely a few early adopters invested in Bitcoin ETFs. Source: Eric Balchunas on X. “Allocations thus far are mainly from those already invested in BTC, with only a few early adopters making inquiries and then allocations," Balchunas remarked. He further added that advisors are yet to propose to their other clients about these funds and the current inflows are purely from direct traffic. Balchunas suggested that Bitcoin ETF inflows have potential to further gain momentum in the future. Some experts also highlight the remaining Bitcoin quantity in GBTC — about 370,000 Bitcoin — as reason for a bullish long-term outlook on ETF flows. “GBTC once held 378k Bitcoin and recently liquidated 9.6k Bitcoin. Thankfully, they cannot maintain this speed for an extended period,” said Allesandro Ottavani, a crypto market commentator, in a post on March 19 to X. On Jan. 11th, Grayscale Bitcoin Trust transitioned from an institutional fund to a spot ETF alongside nine other spot Bitcoin ETFs being approved from fund issuers such as BlackRock and Fidelity. Inside Pink Drainer’s magazine: A security analyst fights back his crypto scam enterprise.
Published At
3/19/2024 7:31:16 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.