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The value of Bitcoin has remained around $70,500 despite recent withdrawals from spot ETFs.
As of this writing, the leading cryptocurrency is priced at $70,584, reflecting a 5.12% increase over the last 24 hours, based on data from CoinMarketCap.
The premier cryptocurrency has risen by nearly 9% in the past week and approximately 37% over the last month. It is only 4.6% short of its all-time high of $73,750 recorded on March 14.
Bitcoin Sustains Momentum Despite GBTC Withdrawals
Bitcoin’s current price stability around $70,500 occurs against the backdrop of notable outflows from the Grayscale Bitcoin Trust (GBTC).
Data from Farside indicates that GBTC has experienced over $14.1 billion in outflows since its transition from a trust to an ETF.
Additionally, US spot bitcoin ETFs faced a continuous series of net outflows for five straight days. This streak concluded on Monday, with spot bitcoin ETFs reporting a net inflow of $15.4 million.
According to BitMEX Research, these funds saw a total of $888 million in investor withdrawals over the past week.
The largest outflows were recorded on March 19 and March 20, with $326 million and $262 million exiting the funds, respectively.
However, the rate of net outflows gradually decreased later in the week, with $94 million withdrawn on Thursday and $52 million on Friday.
Significantly, BlackRock’s iShares Bitcoin Trust (IBIT) noted its lowest single-day flow total on Friday, with only $19 million.
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Alongside the Fidelity Wise Origin Bitcoin ETF, both IBIT and Fidelity’s product managed to secure net inflows during each of their first 50 days of trading, a feat not previously observed in the new ETF landscape.
This recent outflow streak marks the first instance the sector has experienced five consecutive days of net outflows.
This follows a record-setting week in which the ETFs saw an influx of $2.5 billion in net inflows, underscoring the volatile characteristics of the cryptocurrency market.
Grayscale Withdrawals May Be Approaching Conclusion
Analysts suggest that the trend of withdrawals from Grayscale’s fund may soon be coming to a close.
Senior Bloomberg ETF analyst Eric Balchunas speculated that the majority of the outflows stem from bankruptcies within the crypto sector and that the worst may be nearing an end.
Balchunas indicated that any withdrawals from Gemini or Genesis, two significant entities in the industry, are likely being utilized to purchase Bitcoin, thereby bolstering the market.
“Takeaway: the worst is probably close to being over. Once it is, only retail will remain, and flows should resemble the February trickle,” Balchunas stated on X.
The more I contemplate it, the more probable it seems that the uptick in flows is linked to the bankruptcies due to the magnitude and consistency. The flows in February illustrated what retail outflows resemble, smaller and more random patterns. Additionally, any Gemini/Genesis outflows are likely buying BTC with cash, hence impacting the market…
— Eric Balchunas (@EricBalchunas) March 22, 2024
Similarly, independent researcher ErgoBTC observed that around $1.1 billion in recent GBTC outflows appears to be connected to the bankrupt crypto lender Genesis.
“The resulting activity volumes and timings of funds exiting GBTC and entering Genesis align quite well,” Ergo noted.
“Simply put, there are not many 2k BTC transactions per day, so it is likely that the GBTC outflows and Genesis inflows are related.”
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