Bitcoin ETF Experiences $154M Outflow Amid GBTC's Record Outflows

By: Eliza Bennet

On March 18, Bitcoin exchange-traded funds recorded a net outflow of $154 million, indicating the first outflow since March 1 and ending a long streak of continuous inflows. These outflows equate to 2,229 BTC based on the reference market rate. The entire outflow was attributed primarily to Grayscale's GBTC product, which experienced a massive outflow of $642.5 million. Conversely, other providers noted modest inflows, with Blackrock's IBIT seeing the highest inflows at $451.5 million. Fidelity's FBTC had its least successful performance, recording only $5.9 million in inflows. Despite this, not a single outflow from the Newborn Nine, which is a positive sign for overall investor sentiment.

This significant outflow succeeds a prolonged period of sustained inflows witnessed in early March. Still, it is noteworthy that despite the considerable outflow on March 18, the month-to-date flows remain in the positive domain at $4.5 billion. The overall health of Bitcoin ETFs is not in question, as year-to-date flows too remain positive, marking a net inflow of $12 billion, equivalent to 211,715 BTC. These figures highlight a continued institutional interest in Bitcoin, though occasional volatility is evident, as showcased by Grayscale's activity.

The recent developments prompt market observers to question whether the March 18 outflow is a one-time event or signals the start of a potential trend reversal. The performance of Bitcoin ETFs acts as an indicator of institutional interest in the crypto market, a critical factor ahead of the impending halving.