First single-day outflow since January sees Spot Bitcoin ETFs record $35.6m loss.
Spot Bitcoin exchange-traded funds (ETFs) in the U.S. experienced a decline in net inflows for the first time, as investors sold off shares of Grayscale’s GBTC fund more than they purchased shares in other funds.
On February 21, spot Bitcoin ETFs saw net outflows amounting to $35.6 million, suggesting that investors were taking profits. This marked the first negative day for these Bitcoin-based ETFs since January 25, after a streak of 17 consecutive days of net inflows led by BlackRock and Fidelity.
Data from SoSoValue reveals that the majority of outflows came from Grayscale’s GBTC ETF. GBTC saw a decrease of $199 million, bringing the total outflows from the converted Grayscale Trust to nearly $8 billion. However, GBTC remains the largest spot Bitcoin ETF in the market, with $22.7 billion in assets under management (AUM).
Despite the outflows from GBTC, BlackRock and Fidelity continue to be leaders in the spot Bitcoin ETF market. Both firms received inflows amounting to tens of millions, with $96.5 million and $52.4 million flowing into their funds, respectively. Combined, these two issuers have over $10 billion in AUM and cumulative inflows, surpassing all other issuers except GBTC.
Although there were net outflows for the first time in about four weeks, Bitcoin still remains attractive to institutional investors. Nine issuers have accumulated over 250,000 BTC, surpassing holdings by companies like MicroStrategy and Tether.
Thomas J. Lee, co-founder and research chief of Fundstrat, believes that these investment vehicles will continue to attract capital from both retail investors and corporate equity. He suggests that this sustained interest will likely contribute to higher Bitcoin prices.
Furthermore, experts predict that the upcoming BTC halving in April will lead to a supply shock, as Bitcoin rewards are reduced by 50% and scarcity is increased.
Read more: Bitcoin miners enter $8.2 billion selling spree: $60,000 price rally at risk?
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