Grayscale’s GBTC recently experienced the greatest day of outflows since its launch, however ETF analysts believe that BTC ETFs are only beginning to gain momentum.
On March 18, Grayscale reported outflows of $642 million. At the same time, inflows into Fidelity’s Bitcoin ETF, the second-largest fund, dropped to $5.9 million, the lowest day on record, according to data from Farside Investors.
Bitcoin is currently trading at $65,875, down 10.5% from its all-time high of $73,797 set on March 14, according to CoinGecko data.
Several market commentators have pointed to slowing Bitcoin ETF flows, the soon to come halving event, and the US Federal Reserve FOMC meeting on March 20 as reasons for BTC's recent price decrease.
However, other analysts have expressed optimism about future Bitcoin ETF flows.
Grant Englebart, a vice president at investment firm Carlson Group, told Bloomberg TV that only a “handful” of his firm’s advisers had seen clients allocate funds to Bitcoin ETFs, with an average investment ratio of 3.5%.
Commenting on the interview, X Bloomberg ETF analyst Eric Balchunas stated that it was consistent with what he had been hearing from Bitcoin ETF fund issuers—that only a handful of early adopters had made a significant allocation to Bitcoin ETFs.
Grayscale Bitcoin Trust was converted from an institutional fund to a spot ETF on January 11, along with the approval of nine other spot Bitcoin ETFs by fund issuers such as BlackRock and Fidelity.
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