Spot Bitcoin ETFs Parry $124M Grayscale Outflow, Notch $91M Net Inflows On Thursday
Portfolio Pulse from Murtuza Merchant
Net inflows into Bitcoin spot ETFs hit $91.27 million on Thursday, led by BlackRock's iShares Bitcoin Trust (IBIT) with $192 million, contrasting with a $124 million outflow from Grayscale Bitcoin Trust (GBTC). This shift indicates a growing investor preference for ETFs closely reflecting current Bitcoin prices over trusts like GBTC. The trend suggests increasing confidence in Bitcoin's stability and future growth, amid signs of market recovery and institutional adoption of digital assets.
April 12, 2024 | 11:00 am
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Grayscale Bitcoin Trust (GBTC) faced a $124 million net outflow, indicating a shift in investor preference away from trusts that do not allow direct redemption into Bitcoin and have historically traded at a discount.
The net outflow from GBTC suggests a declining investor interest in trusts that do not offer direct Bitcoin redemption, especially in bear markets. This could negatively impact GBTC's price in the short term as investors pivot to ETFs like IBIT that more closely reflect Bitcoin's current market value.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
BlackRock's iShares Bitcoin Trust (IBIT) experienced a record $192 million inflow, indicating strong investor confidence and preference for ETFs that closely track Bitcoin's current prices.
The substantial inflow into IBIT suggests a bullish sentiment among investors towards Bitcoin and preference for ETFs over traditional trusts. This could lead to a short-term positive impact on IBIT's price as it reflects growing market confidence and demand for Bitcoin-linked investment products.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100