The spot Bitcoin ETF recorded $35.6 million in its first daily outflow since January.
The US spot Bitcoin ETF saw its first daily net outflow as Grayscale GBTC sales outpaced inflows into nine other funds.
On February 21, the spot Bitcoin (BTC) ETF recorded net outflows worth $35.6 million in a profit-taking round by investors. Yesterday was the first day that Bitcoin-based exchange traded funds experienced negative readings since January 25, following 17 consecutive days of net inflows led by BlackRock and Fidelity.
Grayscale’s GBTC ETF accounted for massive outflows, according to SoSoValue. GBTC invested $199 million, bringing the converted Grayscale trust’s total return to close to $8 billion at press time. GBTC was still the largest Bitcoin ETF on the market, with $22.7 billion in assets under management (AUM).
BlackRock and Fidelity remain the Bitcoin ETF leaders behind Grayscale, with both companies attracting tens of millions of dollars worth of inflows despite the GBTC exit. The issuer received inflows of $96.5 million and $52.4 million. Together, these two companies have more AUM and cumulative inflows of over $10 billion than any other issuer except GBTC.
Expert: Spot Bitcoin ETFs Ideal for Price Rise
Bitcoin is seeing demand through institutional investment wrappers despite the first day of net outflows in about four weeks, driven by GBTC redemptions. Nine issuers have amassed more than 250,000 BTC in less than a quarter, surpassing existing Bitcoin holders such as MicroStrategy and Tether.
Thomas J. Lee, co-founder and head of research at Fundstrat, said these investment vehicles will continue to attract capital from both retail investors and corporate assets. Lee explained that this continued interest is likely contributing to the rise in Bitcoin prices.
Additionally, experts speculate that the upcoming BTC halving, expected in April, will result in a supply shock as Bitcoin rewards will be cut by 50% and scarcity will increase.