In a notable shift, spot Bitcoin exchange-traded funds (ETFs) in the United States witnessed their first daily net outflows since January, as the selloffs of Grayscale GBTC outweighed inflows into nine other funds.
On February 21st, spot Bitcoin ETFs saw net outflows amounting to $35.6 million, signaling a potential round of profit-taking by investors. This marked the first instance of negative net numbers for these Bitcoin-based ETFs since January 25th, following a streak of 17 consecutive days of net inflows, primarily driven by investments from BlackRock and Fidelity.
According to data from SoSoValue, Grayscale’s GBTC ETF accounted for the majority of outflows, shedding $199 million. This brings the total outflows from the converted Grayscale Trust to nearly $8 billion at the time of reporting. Despite the outflows, GBTC remains the largest spot Bitcoin ETF in the market, boasting $22.7 billion in assets under management (AUM).
BlackRock and Fidelity continue to lead the pack among spot Bitcoin ETF issuers, with both firms attracting tens of millions in inflows despite the GBTC exits. BlackRock recorded inflows of $96.5 million, while Fidelity saw $52.4 million flowing into their funds. Together, these two issuers command over $10 billion in AUM and cumulative inflows, surpassing all others except GBTC.
Experts view spot Bitcoin ETFs as significant drivers of price rallies, with institutional investment vehicles continuing to attract capital from retail investors and corporate entities alike. Fundstrat co-founder and research chief, Thomas J. Lee, predicts sustained interest in these investment vehicles will likely contribute to upward pressure on Bitcoin prices.
Furthermore, analysts anticipate the upcoming Bitcoin halving, scheduled for April, to introduce a supply shock as Bitcoin rewards are halved, thereby increasing scarcity. This fundamental shift in supply dynamics is expected to further bolster Bitcoin’s value.
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