Last week, US BTC ETFs had outflows of $156 million, amid the market decline. Meanwhile, GBTC saw inflows for two days in a row as markets improved.
Bitcoin ETFs saw outflows of $156 million last week, although this has apparently been changing as Grayscale’s GBTC decline comes to an end.
According to a report presented by CoinShares, the capital outflows that occurred last week were significant, as the price of BTC fell below the average purchase price of ETF issuers.
Likewise, the report points out that automatic sell orders could have accelerated the decline of BTC in the period analyzed.
According to a report presented by CoinShares, the capital outflows that occurred last week were significant, as the price of BTC fell below the average purchase price of ETF issuers.
Likewise, the report points out that automatic sell orders could have accelerated the decline of BTC in the period analyzed.
“We estimate the average purchase price of these ETFs since launch to be US$62,200 per bitcoin, as the price fell 10% below that level, it may have triggered automatic sell orders.”
On May 1, BTC hit a low of $56.5K, causing a bloodbath and selloffs across the market. All US spot BTC EFTs experienced massive outflows on that date, marking the departure of IBIT from BlackRock since January.
On May 1, then, total outflows reached $563.7 million, with Fidelity and Grayscale in the top spots with $191 million and $167.4, respectively. Outflows, however, slowed toward the end of the week, bringing total outflows to $156 million, according to the report.
The report also refers to the current status outside the US: “Regionally, while the outflows were primarily focused on the US, which saw US$504m of outflows, Canada, Switzerland and Germany also saw outflows, totaling US$9.6m, US$9.8m and US$7.3m respectively.”
Will GBTC U-Turn Lead to BTC ETFs Recovery?
As BTC rose from $56.5k to $65k, market sentiment improved. However, Grayscale’s GBTC rally was the most surprising event, and here’s why.
Last Friday, Grayscale’s GBTC recorded the first inflow of $63.9 million, and on Monday it confirmed another for $3.9 million. Grayscale’s U-turn took Bloomberg analysts by surprise, with one of them, Eric Balchunas, commenting as follows:
“I don’t know. But it looks like inflows again today too. They do have an extensive marketing budget. That combined w recent rebound and no more ppl looking to leave could be why.”
Investor appetite increased due to the recovery, as net inflows reached $378.2 million last Friday. US BTC EFTs remained in the green on Monday, recording a net inflow of $217 million.
Recently, BTC returned to its previous price range between $60,000 and $71,000, although it fell below $64,000, after obtaining liquidity at $65,500.
If the BTC recovery extends to the range high, the US BTC ETFs could reverse last week’s outflows of $156 million.
BTC Forecast
According to CryptoPredictions, Bitcoin started in May 2024 at $135,300 and is predicted to end the month at $50,448,685. For May, the maximum forecasted BTC price is $68,302,039 and the minimum price is $135,300.
For today, May 8, the BTC Price is expected to be in the $56,609.085 – $83,248.655 range. Bitcoin is predicted to end today at $66,598,924.
By Leonardo Perez
