Spot Bitcoin ETF Outflows See Remarkable Second Week Since Launch

Key Points:

• Spot Bitcoin ETF outflows continue for the fifth day, driven by significant GBTC selling, marking a shift from previous bullish sentiment.
• Despite outflows from Grayscale’s Bitcoin Trust, other ETFs consistently purchased Bitcoin, accumulating 17,018 Bitcoins this week.

Spot Bitcoin ETF outflows have persisted for the fifth consecutive day, fueled by significant selling in the Grayscale Bitcoin Trust (GBTC), marking a departure from previous fervor driving the token to record highs.

Spot Bitcoin ETF Outflows Persist Amid GBTC Selling Spree

According to HODL15Capital, GBTC saw substantial outflows, bleeding 30,582 Bitcoins, eclipsing inflows from other approved ETFs. Despite Grayscale‘s sizable outflows, all other ETFs consistently purchased Bitcoin, accumulating a total of 17,018 Bitcoins this week.

Bitcoin surged over 5% on Wednesday in the US following signals from the Federal Reserve hinting at potential interest-rate cuts, impacting various asset classes. However, the rally stalled in Asia on Thursday, contrasting with gains in global stocks and gold, as ETF flow data influenced market sentiment.

Read more: What is Bitcoin Halving? Why is this event of interest?

Bitcoin Rally Stalls as ETF Outflows Hit Five-Day Streak

The recent weak price action coincides with five consecutive days of negative net flows for U.S.-listed spot Bitcoin ETFs. BTC has retreated from its March 14 peak as the countdown to the blockchain’s halving, where mining rewards decrease by 50%, enters its final month. Historically, BTC tends to decline leading up to the halving, following a similar pattern this time as well, as per CoinMarketCap data.

Throughout the week, spot Bitcoin ETF outflows have recorded over $800 million, poised to endure their second negative week since late January when BTC corrected to $39,000. Despite the recent outflows, interest in Bitcoin remains evident, with inflows persisting in most ETFs, albeit insufficient to offset GBTC‘s substantial withdrawals.