The landscape of Bitcoin investments witnessed a significant shift as the United States’ spot Bitcoin exchange-traded funds (ETFs) experienced an unprecedented withdrawal. On March 19, the market saw a staggering $326 million exit from ten Bitcoin ETFs, marking the largest single-day outflow ever recorded for these investment vehicles.
Among the affected, Grayscale’s Bitcoin Trust (GBTC) stands out, having reported over $23.7 billion in assets under management as of that date. However, the continuation of recent outflow trends could see GBTC deplete its assets by late July. On the day in question, GBTC alone saw net outflows amounting to $443.5 million.
Contrastingly, ETFs managed by BlackRock, Fidelity, and Bitwise were the day’s outliers, reporting net inflows. Collectively, these three managed to attract $117.3 million, albeit still marking one of the lowest inflow days for new Bitcoin ETFs, GBTC excluded. BlackRock’s iShares Bitcoin Trust (IBIT) led the inflow chart with $75.2 million, followed by the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Bitwise Bitcoin ETF (BITB), which recorded their lowest inflow day at just $2.5 million, aside from days with zero new inflows.
This record-breaking outflow more than doubles the previous record set on January 24, when the ETFs saw $158.3 million leave. It also represents the second consecutive day of net withdrawals, pointing to a broader trend of decreasing investor confidence or shifting market dynamics.
The outflows coincide with a notable dip in Bitcoin’s price, which fell to as low as $62,400 during U.S. trading hours on March 19. This decline continues a trend from its all-time high of $73,835 on March 14. In the last 24 hours, Bitcoin’s price dropped by 5.4%, barely holding above its recent low at $61,173, indicating a volatile period for the cryptocurrency.
Adding to the concern, March 18 marked GBTC’s highest single-day net outflow at $642.5 million. Since transitioning from a trust to an ETF on January 11, GBTC has experienced nearly $12.9 billion in outflows over 49 trading days, underscoring the challenging environment for Bitcoin investment products.
This trend highlights a critical moment for Grayscale and similar investment funds, suggesting a potential reevaluation of strategies or investor sentiment towards Bitcoin ETFs. As the market continues to evolve, the coming months will be crucial in determining the future landscape of cryptocurrency investments.
