Bitcoin exchange-traded funds (ETFs) in the United States are experiencing significant outflows, with a total of $319 million being withdrawn since April 12. Grayscale’s GBTC is leading the way in outflows, with $90 million being withdrawn on Thursday alone. However, inflows into Fidelity and BlackRock’s ETFs have helped to offset these outflows. The high fee structure of GBTC has been cited as a reason for the outflows, but slow inflows into other ETFs are also a concern. BlackRock’s ETF, for example, saw an inflow of $18.8 million on Thursday, a 93% decrease from its monthly high on April 5.
An analysis by Matrixport has revealed that key liquidity drivers for BTC ETFs have slowed down in recent weeks. Despite a 10-15% decline in BTC prices, there has been no increase in net inflows, indicating that demand for US-listed BTC ETFs may be saturated. The current tension in the Middle East, which should have been favorable for BTC, has not had the expected impact. BTC is currently trading at $64,700, a 13% decrease, and has failed to establish itself as a risk-off asset during this period of uncertainty.
