This week has seen a major turbulence in the Spot BTC ETF market. Total net outflows have approached $900 million. Moreover, this coincides with the Bitcoin (BTC) price decline and the cryptocurrency market crash. The major contributor to these outflows has been the Grayscale Bitcoin ETF (GBTC). It has seen a staggering total outflows of $14 billion since its launch in January 2024.
Spot BTC ETFs Record Full Weekly Outflows Bitcoin ETFs have recorded outflows of over $888 million this week. On Friday, March 22, the Spot Bitcoin ETF saw a massive net outflow of $51.6 million. GBTC alone recorded a single-day outflow of $169 million. In contrast, BlackRock’s IBIT ETF saw minimal net inflows, mitigating some of the negative impact.
Although Bitcoin price is under pressure, currently trading at $66,950 with a market cap of $1.259 trillion, analyst Michael van de Poppe sees continued inflows from BlackRock into spot Bitcoin ETFs as a positive sign of continued institutional buying activity. This suggests that the market cycle is not over yet.
GBTC outflows continue to impact the Bitcoin ETF market, with another massive outflow of $359 million on Thursday, March 21. That brings the total for the week to $1.8 billion. Furthermore, outflows from Bitcoin ETFs have accelerated, reaching $95 million on March 21 and $261 million on March 20. That brings the total to $742 million over the three-day period.
While GBTC saw a notable single-day outflow of $386 million on Wednesday, March 20, IBIT saw a massive inflow of $49.28 million. That brought the all-time net inflow total to $13.09 billion. However, concerns over central bank action have led to ETF inflows drying up this week.
Market Sentiment With Bitcoin ETFs facing back-to-back days of outflows, totaling $326 million on Tuesday, March 19, market sentiment appears to be shifting. Institutional investors have been cautious ahead of the Federal Open Market Committee (FOMC) decision on March 20, which was reflected in lower inflows across most ETFs.
GBTC’s woes continued with a massive $444 million inflow on Tuesday, deepening its losses. Conversely, BlackRock’s Bitcoin ETF regained momentum on Monday, March 18, recording $451.5 million inflows, in contrast to minimal inflows from other ETFs.
