The American Bitcoin (BTC) Spot exchange traded funds (ETFs) are having a remarkably bad week.
Yesterday, March 20, the newly listed funds experienced significant outflows for the third day in a row.
Deflation in Bitcoin ETFs continues for the third day in a row
According to BitMEX Research On Monday, March 18, the total net outflow from new Bitcoin ETFs was $154.3 million, which was still just shy of the daily record set on January 24.
However, on Tuesday, March 19, net outflows for Bitcoin ETFs reached a record $326.2 million.
On Wednesday, March 20, funds experienced significant outflows for the third day in a row. This totaled $261.6 million, the second highest single-day outflow.
This brings the net outflow in the last three days to $742.1 million.
Outflow Grayscale vs. BlackRock Inflow
Grayscale’s “GBTC” fund continues to account for the outflow. This fund already existed before it was converted into an ETF and has only recorded capital outflows so far.
Because an ETF makes it easier to exit. Investors therefore decide to cash in their profits. A large proportion also decide to switch to one of the other new Bitcoin ETFs. These are all more cost-effective than Grayscale.
Grayscale outflow is increasing significantly this week. On Monday, the GBTC fund saw a record outflow of $642.5 million.
This was somewhat offset by a large inflow into BlackRock’s “IBIT” fund. That was $451.5 million on Monday.
On Tuesday and Wednesday, Grayscale’s outflow fell, but BlackRock’s inflow also fell significantly. Inflows into BlackRock were just $75.2 million on Tuesday and just $49.3 million on Wednesday. Only on February 6th was the inflow into IBIT slightly lower at $45.2 million.
The outflow from Bitcoin ETFs is noticeably accompanied by a correction in the Bitcoin price. A week ago the price was still at one All-time high of approximately $73,700.
Yesterday the price hit a low of $60,700, a decline of almost 18%. However, yesterday evening the price began to recover and is now back above $67,000.