The ten Bitcoin ETFs in the US experienced a staggering outflow of $740 million within just three days, marking their largest three-day outflow since their inception in January. This significant event follows a surge in interest that propelled the market’s largest cryptocurrency to an all-time high of $73,700.
From Monday to Wednesday, Bitcoin ETFs witnessed a net withdrawal of $742 million, including outflows from the Grayscale Bitcoin Trust (GBTC) and the newborn nine.
Grayscale Bitcoin Trust Sees Major Outflows
According to Eric Balchunas, a Bloomberg ETF expert, the Grayscale Bitcoin Trust has witnessed a notable increase in outflows. This recent trend suggests a “second wave” of investor withdrawals, with a substantial $1.4 billion exiting the trust in just this week.
These withdrawals have set a new record for cumulative outflows in ETF history, surpassing all other ETFs in year-to-date outflows. Despite this, GBTC still ranks third in revenue generation among the 3,400 available ETFs, indicating its ongoing financial success.
Despite recent outflows, these funds have performed well overall, with net inflows of $11.4 billion recorded since their launch, according to Bloomberg data. This marks one of the most successful ETF category debuts.
Market Performance and Predictions
On Wednesday, Bitcoin surged by 9.6% in the US, driven by indications from the Federal Reserve (Fed) of potential interest rate cuts. However, the situation differed in the Asian market on Thursday, with Bitcoin losing momentum amid continued gains in global stocks and gold. This contrasting performance is attributed to the news of outflows from Bitcoin ETFs.
Despite this, well-known crypto analyst Michael van de Poppe shared an optimistic prediction on social media platform X (formerly Twitter). He anticipates a “massive bounce” for Bitcoin, suggesting the possibility of a continued upward trend.
Van de Poppe also forecasts that Bitcoin could consolidate in the short term before launching another rally towards the all-time high it achieved prior to the halving event, expected to start in April.
At present, BTC is trading at $65,428, reflecting a 4% decrease in the past 24 hours mirroring the ongoing outflows in the ETF market. However, over longer periods, Bitcoin has demonstrated consistent gains, with a 27% increase over the past thirty days and a remarkable 54% gain year-to-date.