Despite “unceasing” outflows from Grayscale, the outlook for spot Bitcoin ETFs remains positive,
with more than $1.1 billion in total inflows across the board, says Bloomberg ETF analyst James Seyffart.
Spot Bitcoin
BTC
tickers down
$39,732
exchange-traded funds (ETFs) have seen $76 million in net outflows on their seventh day of trading,
according to new data from Bloomberg ETF analyst James Seyffart.
In a Jan. 23 post on X (formerly Twitter), Seyffart wrote that it had been a “bad day” overall for
Bitcoin ETFs in the “Cointucky Derby,” noting that Grayscale has the largest net outflows among the ETFs.
“$640 million flow out today. Outflows aren’t slowing — they’re picking up.
This is the largest outflow yet for GBTC. Total out so far is $3.45 billion,” added Seyffart.
Speaking to Cointelegraph, Seyffart said that overall, the flows into the spot Bitcoin ETFs remained
positive, with BlackRock enjoying its third-largest days of positive flows so far, netting a total of $272 million in inflows on the day.
“On a net basis we have seen over $1.1 billion flow into spot bitcoin ETFs, even after accounting for the GBTC outflows,” he said.
While Seyffart admitted that the outflows from GBTC appeared to be “unceasing,” at this time,
he expects the GBTC-led dumping to cool off in the coming fortnight.
Much of the outflows from Grayscale’s recently converted GBTC fund have been tied to outsized selling from the FTX estate.
According to a Jan. 22 report citing sources familiar with the matter, the FTX estate had offloaded
roughly two-thirds of its 22.8 million GBTC shares by Jan. 22.
The sale of the shares is estimated to account for approximately $600 million of the total net $3.4 billion in GBTC-related outflows.
The price of Bitcoin has fallen significantly since the 10 spot ETFs were approved on Jan.
10, plunging from a high of $49,100 to as low as $39,500 on Jan. 23. Bitcoin is
currently holding steady at just above the $40,000 mark, according to data from TradingView.
Notably, Bitcoin’s downward price action comes amid a sudden and sharp decline in open interest on
Bitcoin futures on the Chicago Mercantile Exchange (CME),
suggesting a decline in enthusiasm among institutional investors to gain leveraged exposure to Bitcoin.
According to data from CoinGlass, open interest on the CME fell from a near-record
high of $6.4 billion on Jan. 12 to $4.4 billion at the time of publication.