- Grayscale’s GBTC has bled over $12 billion since inception, with the outflow trend persisting.
- Low inflows to other ETFs are becoming unable to counterbalance GBTC’s outflows.
- The U.S. spot ETF market has witnessed the third consecutive day of net negative flows, losing the recent $12.1 billion peak.
Data from European asset manager CoinShares has highlighted that the unyielding outflows from Grayscale Investment’s Bitcoin exchange-traded fund (ETF), GBTC, are now impacting the net flow of funds to the U.S. ETFs.
In a recent post on X, James Butterfill, the Head of Research at CoinShares, disclosed that Grayscale’s GBTC negative flows now surpass the dwindling inflows from newly introduced Bitcoin ETFs by the largest margin since their inception.
Butterfill noted that funds going into these Bitcoin ETFs have witnessed a total of $749 million in negative flow so far this week. The figure coincides with Grayscale’s GBTC outflow surpassing the $12 billion threshold, as depicted in the chart accompanying Butterfill’s tweet.
Market statistics have shown that Grayscale has not seen a single day of positive flow since listing an ETF on January 11. On the other hand, other Bitcoin ETF issuers like BlackRock, Fidelity, and Valkyrie continue to reign with an influx of funds. Their inflows have enabled the U.S. Bitcoin spot ETF market space to peak at $12.1 billion last week despite Grayscale’s continuous draining.
However, the U.S. Bitcoin spot ETF market is facing challenges as Bitcoin’s value has dipped. In particular, inflows to the ETFs have lowered considerably, making them unable to counterbalance Grayscale’s continuous outpouring.
On Monday, the ETFs witnessed the first negative flow of $154 million since March 1. On Tuesday and Wednesday, $326.2 million and $261.6 million outflows were similarly recorded. Essentially, the U.S. spot ETF market is witnessing the third consecutive day of net negative flows, bringing the total influx below the recent $12.1 billion peak.
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