TL;DR
- Unexpected Outflows: Despite Bitcoin’s surge above $72,000, Bitcoin ETFs saw a significant outflow of $200 million, casting doubt on the stability of the $69,000 support level and future price direction.
- Mixed ETF Performance: While Grayscale’s GBTC spot ETF experienced over $303 million in outflows, other ETFs like Bitwise and BlackRock’s iShares reported net inflows, leading to a collective net outflow of approximately $224 million from spot Bitcoin ETFs.
- Steady Inflows for Leading ETFs: BlackRock’s IBIT and Fidelity’s FBTC maintained an unbroken streak of inflows, even as overall ETF flows were slow, possibly due to profit-taking or the upcoming US Tax Day, while traders remain bullish with BTC price targets up to $80,000.
Bitcoin ETFs have experienced a significant outflow of $200 million, despite Bitcoin’s recent surge above $72,000. This unexpected movement has raised questions about the stability of the $69,000 support level and the future direction of Bitcoin’s price action.
A notable shift in the cryptocurrency market was observed, primarily influenced by Grayscale’s GBTC spot ETF, which experienced a significant net outflow of over $303 million in a single day.
In contrast, other Bitcoin ETFs witnessed net inflows; Bitwise Bitcoin ETF reported over $40 million, and BlackRock’s iShares Bitcoin Trust saw more than $21 million in net inflows, according to Farside’s data. Collectively, the net outflow from spot Bitcoin ETFs totaled approximately $224 million.
Analysts are puzzled by this development, as it comes at a time when Bitcoin appeared to be gaining momentum. One popular analyst noted that it was one of the largest outflow days ever recorded, which is particularly surprising given the recent price pump.
IBIT and FBTC: The Unbroken Streak of Bitcoin ETFs Inflows
The two largest ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC), managed to avoid losses, maintaining an unbroken streak of inflows. Market participants had previously expected net flows to improve following the announcement by the bankrupt crypto lender Genesis that it had completed a multi-billion-dollar offloading of GBTC shares, which it would use to buy BTC.
However, the overall day for ETF flows was described as “very slow,” considering the price action. Some speculate that this could be due to profit-taking, as ETFs are usually held for the long term. Others suggest that the upcoming US Tax Day on April 15 might be a factor influencing investor decisions.
Traders, on the other hand, are sticking to their bullish BTC price targets. Despite the short-term price action showing signs of uncertainty, some traders are looking for a reversal upward, with targets set as high as $80,000. They argue that once the price successfully holds above $71,400, new all-time highs could be on the horizon.
This recent outflow has certainly rocked the Bitcoin ETF market, leaving investors and analysts alike to wonder whether the $69,000 support can endure or if we are on the cusp of a new price discovery phase for Bitcoin. As the situation unfolds, the cryptocurrency community will be watching closely to see if this outflow is a mere blip or a sign of a more significant trend.
