Spot Bitcoin ETFs Steal The Show Again, Latest Coinbase Report Insights

Key Points:

• Spot Bitcoin ETFs recently faced their first net outflows in two months, with $836 million leaving from March 18 to 21.
• The Grayscale Bitcoin Trust (GBTC) experienced a significant outflow of $1.83 billion over four days.
• Analysts suggest this indicates a capital rotation, with investors favoring Spot Bitcoin ETFs with lower fees than GBTC.

Coinbase reports Spot Bitcoin ETFs as crypto market’s focus. Despite recent $836M outflow, funds have mainly flowed into these ETFs. GBTC saw a $1.83B withdrawal.

Spot Bitcoin ETFs have recently been the focal point of the cryptocurrency market, according to a Coinbase report. Instead of other cryptocurrencies, funds have primarily flowed into these ETFs.

However, the past week marked the first time in two months that these Spot Bitcoin ETFs experienced net outflows.

Spot Bitcoin ETFs Lead Crypto Investment Inflows

Coinbase observed that from March 18 to March 21, there was an outflow of $836 million. This coincided with Bitcoin’s value dipping below $63,000, though it has since rebounded to around $66,800.

A significant part of the outflow was from the Grayscale Bitcoin Trust (GBTC), which saw a massive $1.83 billion withdrawal over four days.

Despite the outflows from GBTC, previous weeks witnessed positive inflows into other ETFs, which outweighed the GBTC outflows.

Analysts believe that this suggests a capital rotation at that time, with investors opting for Spot Bitcoin ETFs that charge lower fees than GBTC.

Readmore: EU Crypto Regulation Lags: Watchdog Resource Strain Hinders Progress (2024)

Possible Selling Pressure from Genesis Global Bankruptcy

One potential source of selling pressure could stem from the bankruptcy estate of Genesis Global, which involved the sale of approximately 35.9 million GBTC shares.

Such a situation is separate from another transaction where Genesis pledged 30.9 million shares as collateral to borrow $1.2 billion.

Having slipped below $63,000 last week as the outflows sped up. Bitcoin is trading at approximately $70,000, representing an increase of over 5% in the past 24 hours.