Grayscale’s GBTC spot bitcoin ETF sees record $642.5 million daily outflow

Grayscale’s converted GBTC spot bitcoin exchange-traded fund saw record daily outflows of $642.5 million on Monday — breaking the prior $640.5 million peak set on Jan. 22.

Inflows of $451.5 million from BlackRock’s dominant IBIT ETF were not enough to help overcome GBTC’s outflows, leading to a total net outflow of $154.4 million yesterday for the first time since March 1, according to data from BitMEX Research.

Bitwise’s BITB was second with $17.6 million worth of inflows. However, Fidelity’s FBTC ETF slumped to its lowest inflows since trading began on Jan. 11 — generating just $5.9 million.

Nevertheless, “IBIT and FBTC now both in Top 5 ETFs by YTD flows,” Bloomberg ETF analyst Eric Balchunas wrote on X. “Little babies hanging with giants.” 

Total net inflows since the U.S. spot bitcoin ETF trading began on Jan. 11 now stand at just over $12 billion. Meanwhile, assets under management at the spot bitcoin ETFs are approaching 875,000 BTC
-7.45%
($56 billion). The newborn nine ETFs — excluding Grayscale’s converted fund — have amassed nearly 489,000 BTC ($31 billion), with BlackRock’s IBIT reaching almost 250,000 BTC ($16 billion) in AUM alone.

In comparison, assets held by Grayscale’s higher fee GBTC fund have fallen by 38% from around 619,000 BTC to 385,665 BTC ($24 billion) in the same period, per BitMEX Research — now holding less than the newborn nine combined.

Spot bitcoin ETF trading volume slows

Daily trading volume for the U.S. spot bitcoin ETFs dropped to $4.2 billion on Monday amid the outflows. This compares to a daily range of between $5.5 billion and $7.7 billion last week and is less than half the record daily trading volume of $9.9 billion set on March 5, according to The Block’s data dashboard.

BlackRock’s IBIT ETF again led, generating a trading volume of $2 billion on Monday. Grayscale’s GBTC and Fidelity’s FBTC generated $1 billion and $630 million in trading volume, respectively. Cumulative trading volume for all spot bitcoin ETFs currently stands at $145.8 billion.

BlackRock’s spot bitcoin ETF has now captured a 48.7% market share by trading volume. Meanwhile, Grayscale’s higher-fee GBTC fund has dropped from a 50.5% market share on Jan. 11 to 25.6% as of yesterday.

Bitcoin drops below $64,000, causing a spike in long liquidations

Monday’s outflows from the spot bitcoin ETFs represent a sharp turnaround from the record weekly inflows and trading volume the funds witnessed last week.

The reversal comes amid a continued downturn for the largest cryptocurrency by market cap since reaching an all-time high of $73,836 on March 14. The bitcoin price fell toward the $63,000 level this morning for the first time in nearly two weeks, causing a spike in long liquidations on centralized exchanges.

Bitcoin is currently trading for $63,228, according to The Block’s price page. The cryptocurrency is down 7% over the past 24 hours and more than 10% over the past week. However, it remains up around 50% year-to-date.

The broader crypto market has also witnessed a significant decline recently, with the GM30 index — representing the top 30 cryptocurrencies by market cap — down 16% to 137.31 since a peak of 164 on March 14.

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