Bitcoin ETFs Experienced Their Highest Daily Net Outflows On Record

Amid Bitcoin's decline to the lower end of the $60,000 territory, market sentiments have swiftly turned bearish, coinciding with spot Bitcoin ETFs recording their highest daily net outflows.

Source: www.bloomberght.com

Farside Investors, a U.K.-based investment management firm, reported that spot Bitcoin ETF products saw net outflows of $326.2 million on March 19, marking the second consecutive day of daily outflows. This comes just a week after these ETFs experienced record inflows exceeding $1 billion on March 12.

The recent two-day streak of outflows follows a 10-day period of consistent inflows, then stopped on March 18 when outflows totaled $154.3 million. These developments underscore a prevailing bearish sentiment amid Bitcoin's price downturn. Furthermore, Bitcoin has consistently retraced the gains made during the recent market surge to $73,000. Since reaching its all-time high of $73,750 on March 14, the cryptocurrency has seen continuous declines, marking a decrease of over 11% in the past week. This continued downward trend has further exacerbated the decrease in bullish pressure.

The latest ETF outflow of $326 million stands as the largest daily net outflow from spot Bitcoin ETFs, far exceeding the previous record of $158.4 million on Jan. 24. Data indicates that most of these outflows originated from the Grayscale Bitcoin Trust (GBTC), which recorded $443 million in capital exiting. Interestingly, the bearish outcome on March 19 wasn't primarily due to increased outflows from these investment products, but rather from reduced inflows. This suggests that while the ETFs failed to attract more BTC, investors didn't significantly withdraw their funds. Markus Thielen, founder of 10x Research, anticipated this bearish turn of events in a recent statement. Thielen argued that the spot Bitcoin ETF market could experience a decrease in capital inflows as Bitcoin corrects the gains from the latest market uptrend.

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