Dropping Interest Leads to Surge in Bitcoin ETF Withdrawals
Bitcoin ETFs are experiencing a significant decline in interest, as indicated by the slowing pace of BTC acquisitions by funds and institutional investors. This trend is underscored by the record Bitcoin ETF outflows from Grayscale, the leading crypto asset manager, which witnessed an unprecedented $643 million outflow on March 18, surpassing the previous record set in January. Grayscale’s Bitcoin holdings have also shrunk by nearly 40% since its fund transitioned to a spot ETF in mid-January. A massive outflow of approximately 241,830 BTC over the past ten weeks has resulted. Consequently, investors have begun withdrawing from the company, now able to convert their shares directly into BTC, a feature that was absent under the old GBTC structure. Moreover, Grayscale’s elevated fees in comparison to its rivals have prompted investors to recalibrate their portfolios. With Bitcoin ETF outflows on the rise, the total net inflows have decelerated, dipping below $200 million in recent days. This is a stark contrast to the record inflow of over $1 billion on March 12. Nevertheless, only a small fraction of advisors are allocating an average of 3.5% of Bitcoin ETFs to client household portfolios. Alongside these developments, Bitcoin prices have been on a downward trajectory, further signaling a dwindling interest in Bitcoin ETF. The keyword phrase, ‘Bitcoin ETF outflows’, signifies this ongoing trend.
Not financial advice. Always be safe and secure when dealing with cryptocurrency. Never send anyone your private key. Always Do Your Own Research..DYOR..DYOR..DYOR!
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