Bitcoin ETFs Experience Net Outflows Amid Price Volatility

Despite recent outflows and price fluctuations, long-term trend for Bitcoin remains robust as BlackRock's ETF reaches $2 billion in AUM.

Bitcoin ETFs have seen net outflows for four consecutive days, with the total inflow shrinking to $745 million. The heavy outflows are largely attributed to Grayscale Investments’ Bitcoin Trust ETF (GBTC), which has seen nearly $4.8 billion leave since its conversion to an ETF.
Despite the outflows, the spot bitcoin ETFs’ aggregate flows are tracking in line with expectations, according to VanEck crypto research head Matthew Sigel. He expects spot bitcoin ETFs to see $2.4 billion of net flows during the first quarter of 2024.
Bitcoin's price has rebounded above $41,000, with slowing outflows from Grayscale’s GBTC converted spot ETF. However, some experts predict that the price of Bitcoin could fall to the mid-$20K range before a local bottom is reached.
BlackRock's spot bitcoin ETF became the first of the recently launched spot bitcoin products to reach $2 billion in assets under management (AUM). The fund is now the third in asset gathering among all of the more than 600 ETFs that launched in the past year.
Despite the recent price volatility and outflows, the long-term trend for Bitcoin remains robust. The introduction of Bitcoin ETFs is seen as a positive step for the long-term viability of the asset class.