Spot Bitcoin ETF Trading Volumes Decline Amid Market Volatility
On Monday, the collective spot Bitcoin exchange-traded funds (ETFs) in the U.S. experienced a shift to net outflows, breaking a streak of net inflows recorded each trading day of the previous week, which amounted to a total of $860 million.
Despite BlackRock’s leading IBIT ETF bringing in inflows of $165.9 million, it couldn’t offset the $302.6 million in outflows from Grayscale’s converted GBTC fund, culminating in a net outflow of $85.7 million for the day, based on data from CoinGlass.
Fidelity’s FBTC ETF saw the second-highest inflows on Monday, totaling $44 million, followed by Invesco’s BTCO with $4.2 million in inflows.
On the other hand, Ark Invest 21Shares’s ARKB ETF experienced its first outflows since it started trading on January 11, with a loss of $300,000.
Other funds recorded inflows ranging from zero to $2 million. As of now, the total net inflows across these funds are slightly over $12 billion.
Selling pressure on Grayscale’s GBTC fund has remained high, with total outflows surpassing the $15 billion mark.
A report from Coinbase earlier this month indicated that the potential sale of 35.9 million GBTC shares by Genesis Global Holdco LLC, worth approximately $2 billion, could be behind the recent increase in GBTC selling pressure.
The decrease in outflows from Grayscale’s GBTC, which carries higher fees, from its March 18 peak of $642.5 million to $104.9 million by March 28, led some analysts to speculate a slowdown in selling pressure.
Nevertheless, the outflows experienced a significant rise again, reaching $302.6 million yesterday, well above the daily average of $274 million.
The figure for Monday might have been influenced by the markets being closed on Good Friday, as noted by Bloomberg ETF analyst James Seyffart, who expressed surprise at the high outflow, expecting a deceleration by now.
Since January 11, when trading began, GBTC’s total outflows have exceeded $15 billion. In terms of bitcoin, the fund has seen a 46% reduction in holdings, from approximately 619,000 BTC to 333,619 BTC ($22 billion), according to CoinGlass data.
Meanwhile, BlackRock’s IBIT ETF has become the leading bitcoin holding fund, with over 252,000 BTC ($17 billion) under management. Fidelity’s FBTC follows, having accumulated more than 144,000 BTC ($10 billion).
Trading volumes for U.S. spot bitcoin ETFs have experienced a decline, with $3.03 billion recorded on Monday. BlackRock’s IBIT led the activity with $1.37 billion in trading volume, while Grayscale’s GBTC and Fidelity’s FBTC followed with $806 million and $556 million respectively, as per The Block’s data dashboard.
This decline in daily trading volumes marks a consistent decrease from the peak of $9.93 billion on March 5, coinciding with bitcoin surpassing its previous all-time high of approximately $69,000. Currently, bitcoin’s price stands at $66,007, reflecting a 4.5% decrease over the last 24 hours after opening above $71,000, based on data from The Block’s price page. Additionally, the GMCI 30 index, which tracks the top 30 cryptocurrencies, has seen a 5.4% drop to 144.80 in the same timeframe.
The recent market fluctuations have resulted in over $135 million in bitcoin positions being liquidated in the last 24 hours, with $93 million of those being long positions, as indicated by CoinGlass data.
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