Spot Bitcoin ETFs, also known as exchange-traded funds, experienced a notable outflow of $55 million on Friday, April 12, marking a reversal following two consecutive days of inflows totaling nearly $215 million. Data indicates that the largest outflow on Friday originated from Grayscale’s GBTC, which saw withdrawals amounting to $166 million. GBTC continued to experience significant outflows, shedding $154.9 million on Monday, April 8, in anticipation of the upcoming halving event.
Conversely, the largest inflow on Friday came from BlackRock IBIT, attracting $111 million in new investments. The impact of Friday’s outflow was evident in the broader crypto market, with Bitcoin itself declining by nearly 5% over the past 24 hours, settling at $65,000. This downturn had a ripple effect across the market, resulting in liquidations nearing $900 million.
Last week, Bitcoin ETFs recorded three days of net outflows totaling $298.4 million, highlighting a cautious sentiment among investors. Despite these trends, Grayscale’s CEO, Michael Sonneshein, remains optimistic, suggesting that the pace of outflows from GBTC may stabilize as Grayscale adjusts its Bitcoin ETF fees downward.
The persistent outflows from ETFs could also be attributed to a pre-halving adjustment phase. It’s widely anticipated that Bitcoin’s halving tends to precede a bullish market phase for the cryptocurrency. Consequently, some investors might be capitalizing on short-term profits ahead of the event, while others adopt a wait-and-see approach amidst concerns that this year’s halving may not yield the substantial rallies seen in previous cycles.
For instance, Marathon Digital recently forecasted that Bitcoin might have already reached its peak post the ETF approval earlier this year. As the market dynamics evolve, monitoring these developments will be crucial for stakeholders navigating the evolving landscape of digital assets.
Source:
SoSo Value