There has been a significant outflow of money from Bitcoin exchange-traded funds (ETFs) in the past four days, suggesting that investors are taking profits after two months of hype.
$836 million outflow this week:
Since March 18th, a net total of $836 million has been pulled out of spot Bitcoin ETFs. This includes outflows of $154 million, $326 million, and $261 million on the 18th, 19th, and 20th of March, respectively.
Grayscale bleeding BTC:
Grayscale, a large institutional investor in Bitcoin, has seen a further outflow of $359 million on March 21st. This adds to a total outflow of $1.83 billion this week for Grayscale, and they have lost 42.3% of their shares since converting to an ETF.
BlackRock inflows slow:
BlackRock, a major investment firm, has slowed the bleeding with their new tokenized RWA fund. Their IBIT fund had an inflow of $233.4 million for the day, bringing their weekly total to $809 million.
Possible reasons for outflows:
Profit-taking after a period of hype.
Recent bankruptcies in the crypto space causing uncertainty.
Analysts believe that the worst of the outflows may be over, and soon only retail investors will be left in the market. This could lead to smaller and steadier flows of money into Bitcoin ETFs.
Overall, the recent outflows suggest a cooling off period for Bitcoin ETFs after a period of rapid growth. It will be interesting to see how the market behaves in the coming weeks and months.
