The latest reports from Farside Investors showed that the US spot Bitcoin exchange-traded funds (ETFs) have been declining at a significant rate since the beginning of Sept.
US Spot Bitcoin ETFs Bleed $288M Since Beginning Of September
According to Farside Investors, the US spot Bitcoin exchange-traded funds (ETFs) have been facing a major downturn since the start of this month.
The data revealed that approx. $288M was lost in net outflows on the first trading day post-labour day weekend.
Altogether, the US spot Bitcoin ETFs have recorded steady net outflows for five consecutive days, amounting to over $750M since last Tuesday.
After the Labor Day weekend, the ETF market experienced intense selling pressure. Eight out of the total 11 Bitcoin ETF issuers reported negative performance.
Grayscale’s GBTC witnessed the most net outflows. As of the end of Tuesday, GBTC recorded additional outflows of more than $50M, while Fidelity’s FBTC recorded about $162M in outflow, which was its second-largest withdrawal since it started operation.
Other issuers, including Invesco, Valkyrie, VanEck, Franklin Templeton, Bitwise, and ARK 21Shares also added to the net outflows.
However, Grayscale Bitcoin Mini Trust (GBTC), WisdomTree’s BTCW, and BlackRock’s IBIT recorded neither inflows nor outflows.
Grayscale’s GBTC May Soon Hit $20B In Net Outflows
Data from Farside Investors further revealed that Grayscale’s GBTC may soon experience total outflows of over $20B if the ETF continues to face outflows.
GBTC’s capital is currently in the red, and the current situation in the crypto market is not helping matters. For instance, Grayscale’s total assets (AUM) dropped to about $13B due to the recent drop in the price of Bitcoin.
According to Grayscale CEO Michael Sonnenshein, another reason Grayscale’s GBTC witnessed such a significant outflow was that most cryptocurrency firms that filed for bankruptcy in 2022/2023 held Grayscale’s Trust shares in their account book.
When these firms were sold off, the Grayscale’s Trust shares they held, which were later converted to GBTC, were sold to repay creditors, adding to the net outflows.
BlackRock’s IBIT Leads The US Spot Bitcoin ETFs Market
Currently, Grayscale’s ETF has lost its position to BlackRock’s IBIT in the BTC ETF market. Since it began operation, IBIT has attracted about $21B to become the largest BTC ETF globally.
Last week, BTCRepublic reported that the US exchange-traded funds (ETFs) posted positive inflows of $202.6M, with the BlackRock Bitcoin ETF (IBIT) leading the charge with an impressive $224.1M in net inflows, outperforming its rivals.
