Spot Bitcoin ETFs record single-day outflow of $35.6 million for the first time since January
Spot Bitcoin ETFs in the US recorded daily net outflows for the first time as Grayscale GBTC selloffs outpaced inflows into nine other funds.
On February 21, spot Bitcoin (BTC) ETFs recorded $35.6 million worth of net outflows, possibly reflecting a round of profit-taking by investors. Yesterday marked the first day these Bitcoin-based exchange-traded funds posted negative numbers since January 25, following 17 straight days of net inflows, led primarily by BlackRock and Fidelity.
According to SoSoValue, Grayscale's GBTC ETF was responsible for the largest outflows. GBTC lost $199 million, bringing total exits from the converted Grayscale Trust to nearly $8 billion as of press time. GBTC was still the largest spot Bitcoin ETF in the market with $22.7 billion in assets under management (AUM).
BlackRock and Fidelity remain the top Bitcoin ETF leaders behind Grayscale, and both firms received tens of millions of dollars in inflows despite GBTC exits. The issuers received $96.5 million and $52.4 million in their funds. These two combined have over $10 billion in assets under management and cumulative inflows, more than any other issuer other than GBTC.
Daily Spot BTC ETF Flows | Source: SoSoValue
Experts: Discover Bitcoin ETFs that are great for price increases
Despite the first day of net outflows in about four weeks, supported by GBTC redemptions, Bitcoin is seeing demand across institutional investment intermediaries. Nine issuers have accumulated over 250,000 BTC in less than a quarter, overtaking established Bitcoin holders such as MicroStrategy and Tether.
Fundstrat co-founder and head of research Thomas J. Lee said these investment vehicles will continue to attract capital from retail investors and corporate investors alike. Lee explained that this continued interest will most likely contribute to higher prices for Bitcoin.
Additionally, experts suspect that the upcoming BTC halving, expected in April, will trigger a supply shock as Bitcoin rewards are slashed by 50% and scarcity increases.
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