The Grayscale Bitcoin Trust (GBTC) spot exchange-traded fund (ETF) has experienced a significant decrease in outflows, coinciding with a rebound in the price of Bitcoin following the release of new United States inflation data.
On April 10, GBTC outflows dropped to $17.5 million, a nearly 90% decrease from the $154.9 million outflows recorded the previous day, according to Farside data.
Simultaneously, the price of Bitcoin (BTC) has risen by 2.08% over the past 24 hours, currently trading at $70,474, as per CoinMarketCap data. However, the cryptocurrency briefly hit local lows of $67,482 after the release of the U.S. Consumer Price Index (CPI) for March, which came in higher than expected at 3.5% year-on-year. This led to concerns that the U.S. Federal Reserve might further delay interest rate cuts.
Some crypto commentators are expressing hope that this could mark the beginning of a slowdown in GBTC outflows, which have totaled $16 billion since GBTC was converted to a spot Bitcoin ETF in January. Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, pointed out that the April 10 outflows are equivalent to roughly 250 Bitcoin, a nearly 95% decrease from the outflows at the start of the week.
GBTC Selling Over?
GBTC with just 250 #Bitcoin in outflows ($18.5M)
Down 95% from Monday pic.twitter.com/Q7TyOMGuMC
— Thomas | heyapollo.com (@thomas_fahrer) April 10, 2024
Not all in the red
In contrast to GBTC’s outflows, other Bitcoin ETFs have seen significant inflows. The Fidelity Wise Origin Bitcoin Fund recorded $76.3 million in inflows, BlackRock’s iShares Bitcoin Trust saw $33.3 million, the Bitwise Bitcoin ETF saw $24.3 million, and the ARK 21Shares Bitcoin ETF had inflows of $7.3 million.
Recently, bankrupt crypto lending firm Genesis offloaded approximately 36 million GBTC shares to acquire 32,041 Bitcoin. The daily GBTC outflows average across the past four months stands at $257.8 million, with the previous low being $22.4 million on February 26.
The development follows Nasdaq-traded spot Bitcoin (BTC) exchange-traded funds (ETFs) witnessed an inflow of $15.4 million, marking a positive shift after five consecutive days of outflows. The downturn follows the recently approved U.S. spot Bitcoin ETFs experiencing a day of record-breaking inflows exceeding $1 billion on Mar. 12.
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