Crypto asset manager Grayscale faced its largest single-day outflow from its Bitcoin ETF, although ETF analysts remain optimistic about the future of Bitcoin ETFs. Over $640 million was withdrawn from Grayscale’s Bitcoin spot ETF on March 18, marking a record day of outflows for the fund since its transition to a spot ETF on January 11. On the same day, the second-largest fund, Fidelity’s Bitcoin ETF, saw a record low inflow of just $5.9 million, according to data from Farside Investors, resulting in a net outflow from Bitcoin spot ETFs of $154.3 million.
At the time of publication, the price of Bitcoin is trading at $65,875, which is 10.5% below its recent all-time high of $73,797 reached on March 14. Some market commentators point to slowing flows into Bitcoin ETFs, the upcoming Bitcoin halving event, and the meeting of the U.S. Federal Open Market Committee on March 20 as reasons for the recent decline in BTC price. Nevertheless, other analysts express an optimistic view on the future flows into Bitcoin ETFs.
Grant Englebart, vice president of investment firm Carlson Group, noted in an interview with Bloomberg TV that only “a few” advisors at his firm had seen clients invest in Bitcoin ETFs, with the average investment size being 3.5% of total assets. Commenting on the interview, Bloomberg ETF analyst Eric Balchunas said it aligns with what he has heard from Bitcoin ETF issuers — only a small number of early adopters have begun to take significant stakes in spot Bitcoin ETFs.
Other commentators point to the remaining Bitcoin holdings in GBTC’s books — approximately 370,000 Bitcoin — as justification for a long-term optimistic view on ETF flows. “GBTC had 378k Bitcoin, and today it sold 9.6k Bitcoin.”
