Record-breaking daily net outflows witnessed by Spot Bitcoin ETFs
Market sentiment has quickly shifted to bearish as Bitcoin’s price drops to the lower end of the $60,000 range, resulting in the highest daily net outflows for spot Bitcoin ETFs.
Data from Farside Investors, a UK-based investment management firm, reveals that spot Bitcoin ETF products experienced net outflows of $326.2 million on March 19, marking the second consecutive day of outflows. This comes just a week after the ETFs saw record inflows of over $1 billion on March 12.
The previous day, March 18, saw outflows of $154.3 million, ending a 10-day streak of persistent inflows. These consecutive days of outflows reflect the prevailing bearish sentiment caused by Bitcoin’s price decline.
Bitcoin has been consistently retracing its gains from the recent market surge to $73,000. Since reaching an all-time high of $73,750 on March 14, the cryptocurrency has been experiencing continuous declines, with a decrease of over 11% in the past week. This downward trend has further intensified the decline in bullish pressure.
The latest outflow of $326 million is the largest daily net flow out of spot Bitcoin ETFs, surpassing the previous record of $158.4 million on January 24. The Grayscale Bitcoin Trust (GBTC) accounted for the majority of these outflows, with $443 million in capital exiting.
Interestingly, the bearish outcome on March 19 was not driven by increased outflows, but rather by diminished inflows. Data shows that all products, except those from BlackRock, Fidelity Investments, and Bitwise, had a net flow of $0. This indicates that while the ETFs did not attract more BTC, investors did not significantly withdraw their funds. BlackRock’s IBIT, Fidelity Investments’ FBTC, and Bitwise’s BITB saw a combined inflow of $117.3 million, but this was not enough to offset the $443 million outflow from Grayscale’s ETF.
Markus Thielen, founder of 10x Research, had predicted this bearish turn of events. Thielen argued that the spot Bitcoin ETF market could experience a decrease in capital inflows as Bitcoin corrects the gains from the recent market uptrend.
