Spot Bitcoin ETF products recorded their largest cumulative daily outflow yesterday, with over millions worth of BTC siphoned out of the market.
Renowned blockchain reporter Colin Wu first called attention to this development in a post on X, citing data from SoSo Value, a financial research resource for cryptocurrency traders and investors.Â
SoSo Value data shows that the Grayscale Bitcoin Trust (GBTC) contributed the most to the $159 million outflow recorded by these investment products on Jan. 24, the ninth day of trading. Notably, GBTC saw $429.28 million outflows, being the only ETF to record outflows.
Per the recent update from Arkham Intelligence, the total Bitcoin moved by Grayscale is 12.2K BTC, valued at $487.4M. The total Bitcoin deposited to Coinbase Prime is 10.0K BTC, valued at $400.2M (-34.4% from the previous day).
Today’s movements from Grayscale:
Total BTC moved by Grayscale: 12.2K BTC | $487.4M
Total BTC deposited to Coinbase Prime: 10.0K BTC | $400.2M (-34.4% from yesterday)https://t.co/K7P3NmHxvf pic.twitter.com/4wjlvXcGAN
— Arkham (@ArkhamIntel) January 25, 2024
Spot Bitcoin ETF Products
However, GBTC’s outflow yesterday was its lowest negative netflow since it started trading. Bloomberg ETF analyst Eric Balchunas confirmed this, emphasizing that the outflows from the GBTC product have continued to drop.
$GBTC outflows today were ‘only’ $425m, lowest bleed since day one and seemingly trending down. That said it’s still a pretty large number. Source: Bloomberg terminal
— Eric Balchunas (@EricBalchunas) January 25, 2024
In addition, inflows to other ETF products have also witnessed a mild decline despite remaining in the green.
BlackRock’s iShares Bitcoin Trust (IBIT) saw $66.16 million inflows yesterday, the second-largest inflow by any spot Bitcoin ETF. This is a significant drop from the $373 million from day 4.
Meanwhile, the Fidelity Wise Origin Bitcoin Fund (FBTC) saw the single largest inflow, totaling $125.5 million.
Ark Invest and 21Shares’ ARKB recorded $24.6 million inflows, BITB from Bitwise saw inflows amounting to $19.08 million, with inflows to Invesco’s BTCO standing at $19.74 million.
In total, with the exception of GBTC, the other spot Bitcoin ETF products witnessed inflows to the tune of $270.24 million yesterday. This figure represents a 71% decline from the high of $932 million recorded on the fourth day of trading.
Over $25B Held Despite OutflowsÂ
The net positive flow into the other spot Bitcoin ETFs was negated by the massive outflows from GBTC, leading to the cumulative net negative outflow in the market on the ninth day.
This marks the third consecutive day of sustained net outflows. The market saw -$77 million flows on day seven and -$105 million on day 8.
The spot Bitcoin ETF market has now recorded five days of negative netflows out of nine. Regardless, the market has seen an all-time positive net flow of $821.19 million across the nine days.
Following the latest batch of flows, GBTC still holds the largest amount of BTC, with assets under management (AUM) currently worth $20.28 billion.
BlackRock’s IBIT has $1.82 billion worth of BTC, while Fidelity’s FBTC holds $1.64 billion. These are the only spot Bitcoin ETF products worth over $1 billion.
Overall, the entire spot Bitcoin ETF market now holds $25.28 billion in net assets, with a trading volume of $1.29 billion yesterday.
Amid the persistent outflows, prominent economist Peter Schiff leveraged the opportunity to criticize the products. Balchunas replied in defense, noting that the market is still early.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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