Negative week for Bitcoin ETFs

Over $887.6 million in net outflows from Bitcoin ETFs. Grayscale, in particular, continues to lose BTC. What next?

Negative record: US Bitcoin ETFs have seen five consecutive days of net outflows. Last Friday, another USD 51.6 million flowed out of the 10 index funds, data from Farside Investors show.

Overall, net outflows in the past week totaled $887.6 million. On Tuesday alone, investors sold $326.2 million worth of Bitcoin ETF shares. The worst day of an already mixed week. Once again, the Grayscale Bitcoin Trust (GBTC) was mainly responsible for the modest overall result on Friday. The former pioneer lost US$169.9 million, meaning its market share is now only 42.7 percent, according to Dune. This means the GBTC lost more than US$2 billion in the past week alone. If Grayscale continues to lose Bitcoin at this rate, GBTC assets will be completely depleted within a few months.

Despite overall net outflows, there was also a winner at BlackRock: the iShares Bitcoin Trust (IBIT) from the world's largest asset manager enjoyed net inflows totaling $828.3 million.

Meanwhile, the cryptocurrency itself has managed to recover and is again strong above 64,000. Even in previous halvings, Bitcoin had to record short-lived price declines. The current phase of weakness therefore shows historical parallels to previous cycles, but the pre-halving dip could persist nonetheless. Regardless of the recent correction, the ten Bitcoin ETFs still hold a substantial 4.19 percent of total BTC in circulation.