A good sign for Bitcoin? GBTC outflow hits record low
Grayscale’s Bitcoin exchange traded fund (ETF) saw new record low outflows of about $18 million on Wednesday, according to reports from Bitmex Research and Farside Investors. This comes after a major prediction made by the Grayscale CEO over the equilibrium of the flow of funds.
Grayscale Bitcoin fund looking for equilibrium
Michael Sonnenshein, Grayscale Investments CEO had mentioned that he forsee the outflows from GBTC to stabilize. This will happen due to decreased selling pressure in the market due to bankrupt crypto firms like FTX.
However, analysts have speculated that the recently increased selling pressure on GBTC could be tied to Genesis. It is selling shares as part of its bankruptcy proceedings. Since its launch, Grayscale Bitcoin ETF has recorded nearly $15 billion in outflows. This contributed to building consistent selling pressure on BTC and the market.
One of the major things that needs to be noted is that GBTC charges the highest annual fees among its competitors. It could also have further impacted investor sentiment.
Dealing with this sort of pressure, Bitcoin finally printed a red index on the 30 day chart. BTC price dropped by around 2% over the past 30 days. However, it is still up by 67% on the year to day (YTD) basis.
Bitcoin price is up by more than 4% in the market. BTC is trading at an average price of $70,853, at the press time. It regained the $70k price level after dumping to the $67K level. Its 24 hour trading volume is up by 2% to stand at $36.2 billion. It is holding a market cap of almost $1.4 trillion.
Are ETFs a hit or flop?
The success of the new spot Bitcoin ETFs is evident as a report suggests that over $30 billion in assets are under management with record breaking trading volumes in March.
As reported, investors are considering these ETFs, however, several factors should be taken into account. It includes the upcoming Bitcoin halving scheduled for April 19. Historical data shows that halving events have driven high price increases for Bitcoin. This event has potentially attracted more investors to the asset and boosted trading volumes.
The crypto market regained pace by surging around 4% over the last day. The total market cap is racing towards the $3 trillion mark now. It now stands at $2.63 trillion. The 24 hour trading volume took a slight hit to stand at $90.85 billion.
