The price of Bitcoin has remained stable around $70,500 despite recent outflows from spot ETFs. Currently trading at $70,584, the leading cryptocurrency has seen an increase of 5.12% over the past 24 hours. It is up by almost 9% over the past week and around 37% over the past month, coming close to its all-time high of $73,750. This stability comes at a time when the Grayscale Bitcoin Trust (GBTC) has experienced significant outflows of more than $14.1 billion since converting from a trust to an ETF. Additionally, US spot bitcoin ETFs saw a streak of net outflows for five consecutive days, with a total of $888 million withdrawn by investors over the last week.
Despite the significant outflows, Bitcoin’s price stability suggests the outflows may soon come to an end. Analysts believe that the worst of the outflows from Grayscale’s fund may be over, with senior Bloomberg ETF analyst Eric Balchunas speculating that bankruptcies in the crypto industry are contributing to the outflows. Balchunas suggested that any outflows from prominent players in the industry such as Gemini or Genesis are likely being used to buy Bitcoin, which could support the market. Independent researcher ErgoBTC noted that approximately $1.1 billion of recent GBTC outflows may be associated with bankrupt crypto lender Genesis, indicating a correlation between the outflows and funds moving into Genesis.
The recent outflow streak from the ETFs marks the first time the sector has experienced five consecutive days of net outflows. This trend comes after a record-breaking week for ETFs, during which they saw an influx of $2.5 billion in net inflows. Despite the volatility in the cryptocurrency market, the Fidelity Wise Origin Bitcoin ETF and BlackRock’s iShares Bitcoin Trust have managed to attract net inflows during each of their first 50 days of trading, a feat not previously seen in the industry. The pace of net outflows gradually slowed down towards the end of the week, with BlackRock’s IBIT reporting its lowest single-day flow total of $19 million on Friday.
Analysts are optimistic that the trend of outflows from the ETFs, particularly from Grayscale’s fund, may be nearing an end. As the outflows are potentially related to bankruptcies in the crypto industry, it is believed that the worst may soon be over, with only retail investors left in the market. The recent uptick in flows may be connected to bankruptcies, as evidenced by the sizes and consistencies of the outflows. It is speculated that any outflows from major players like Gemini or Genesis are likely being used to buy Bitcoin, suggesting that these outflows are supporting the market. The correlation between the outflows from GBTC and funds moving into Genesis indicates a close relationship between the two events, further supporting the idea that the worst of the outflows may be coming to an end.
Despite the recent outflows from spot ETFs, Bitcoin has maintained its momentum, with its price stability around $70,500 reflecting the overall resilience of the cryptocurrency market. With Bitcoin trading at $70,584 and showing an increase of 5.12% over the past 24 hours, it remains close to its all-time high of $73,750. The recent outflows from the ETFs, while significant, may soon come to an end as analysts speculate that bankruptcies in the crypto industry are the primary reason for the outflows. This optimism is supported by the correlation between outflows from Grayscale’s fund and funds moving into Genesis, suggesting that the worst of the outflows may be close to being over, leaving only retail investors in the market.
