Spot Bitcoin ETF flows are turning positive again as GBTC outflows taper off.
Assets leaving Grayscale Investment’s spot Bitcoin ETF hit a one-day low, helping the broader fund category halt net outflows for a second day in a row.
The Grayscale Bitcoin Trust ETF (GBTC) saw $17.5 million of net funds exit the fund on Wednesday, according to Farside Investors data. The total hit a record low and reflected a significant decline in net outflows of $303 million on Monday and $155 million on Tuesday.
The U.S. spot Bitcoin ETF segment of 11 funds recorded net inflows of $124 million on Wednesday, driven by lower GBTC total outflows.
According to the data, BTC funds endured cumulative net outflows of $224 million and $19 million on Monday and Tuesday, respectively.
The price of Bitcoin hovered around 70,440 at 7:30 a.m. ET, up nearly 7% from a week ago.
Grayscale’s Bitcoin product has seen net outflows every day since it was converted to an ETF on January 11. GBTC asset outflows peaked at $642 million on March 18.
The trust’s asset hemorrhage was somewhat expected, partly due to GBTC’s 1.5% fee. This is a much higher price range than nine competing spot Bitcoin ETFs launched on the same day.
Read more: GBTC net outflows reach $10 billion within two months of ETF conversion
Net outflows from GBTC on Wednesday were $17.5 million, down from the previous low of $22 million on February 26.
Sumit Roy, senior analyst at ETF.com, told Blockworks at the time that he believed the initial selling by arbitrageurs and those looking to move into cheaper funds was “largely over.” However, GBTC outflows surged within a few days, reaching nearly $600 million on February 29.
Some sector observers believed the continued GBTC outflows in recent weeks were the result of bankrupt lender Genesis selling its stake in the fund. The company’s stake in the Grayscale fund was worth about $1.6 billion in mid-February.
However, according to court documents, Genesis and its affiliates had “outright cashed out” nearly 36 million GBTC shares as of April 2, with the proceeds from the sale being used to purchase 32,041 BTC.
Overall, net outflows from the GBTC ETF amount to nearly $16 billion. Despite these totals weighing on the broader U.S. spot Bitcoin fund category, the sector has seen net inflows of $12.5 billion in the three months they have been on the market.
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