TL;DR
- Spot ETF Withdrawals: Bitcoin spot ETFs have seen a $4.3 million withdrawal on Thursday, part of a $319 million net outflow since April 12th, mainly from Grayscale’s Bitcoin Trust (GBTC).
- Inflows and Outflows: While GBTC experiences continued outflows, other funds like Fidelity’s FBTC and BlackRock’s IBIT have seen inflows, albeit at a decreased rate.
- Bitcoin’s Trading Price: Bitcoin’s current trading price is $64,700, a 13% decrease from its peak, influenced by factors such as the U.S. tax deadline, Federal Reserve policies, and geopolitical tensions.
On Thursday, the spot Bitcoin exchange-traded funds (ETFs) experienced a withdrawal of $4.3 million, marking a continuation of a four-day trend of net outflows. This period of withdrawals comes in anticipation of the mining reward halving event, which is traditionally viewed as a positive development for the market.
Since April 12th, these ETFs have experienced a total net outflow of over $319 million. A large portion of this outflow has been from Grayscale’s Bitcoin Trust (GBTC), according to early statistics from Farside Investors. Just on Thursday, GBTC saw outflows totaling $90 million.
However, this was somewhat mitigated by inflows into other funds, such as Fidelity’s Bitcoin ETF (FBTC) and BlackRock’s Bitcoin ETF (IBIT). Grayscale’s fund has been experiencing monetary losses since its inception, attributed to various factors including its high fee structure. While the outflows from GBTC may not raise immediate concerns, the deceleration of inflows into other ETFs could be indicative of a broader issue.
The Current Trading Price of Bitcoin and its Impact on Spot ETFs
On that day, BlackRock’s IBIT experienced an inflow of $18.8 million, marking a notable decrease of 93% from its highest point in April at $308.8 million. In a recent market update, Matrixport pointed out that important liquidity metrics like stablecoin growth and investments in U.S.-listed Bitcoin ETFs have been trending downward for a few weeks.
The firm observed that ETF inflows reached their zenith on March 12th, followed by four consecutive days of net outflows. The demand for U.S.-listed Bitcoin ETFs seems to have reached a plateau, as even a 10-15% drop in Bitcoin prices has not spurred an increase in net inflows.
According to the latest update, Bitcoin is currently being traded at $64,700, showing a decrease of over 13% from its record high of more than $73,500 reached a month ago. The drop in Bitcoin’s value could be attributed to several reasons. These reasons comprise the upcoming tax payment deadline in the U.S., a lower chance of interest rate cuts by the Federal Reserve, and increasing geopolitical tensions between Iran and Israel.
