On March 21, Grayscale Bitcoin Trust (GBTC) Recorded another $359 million in departures. Massive GBTC outflows have been the main bearish narrative recently.
On March 21, Grayscale Bitcoin Trust (GBTC) Recorded another 359 million dollars in money outflows. Massive GBTC outflows have been the main bearish narrative recently.
Who is behind the massive capital outflows?
ETF analyst Eric Balchunas believes the huge increase in capital outflows could be related to bankruptcies due to their “size and consistency.”
Although there is some speculation that retail investors could jump ship due to falling Bitcoin prices, Balchunas has noted that capital outflows would have been smaller and more random in such a case.
According to the analyst, in February, for example, capital outflows driven by retail trade were observed.
Balchunas added that the worst may already be over and that it is highly unlikely that retail will be able to match these outputs on its own.
“Bottom line: The worst is probably about to end. Once this happens, only retail will be left and flows should look more like the trickle of February,” he added.
A bearish signal?
Speaking of the dwindling inflows recorded by companies such as BlackRock and Fidelity, the expert has acknowledged that they are “low” by his standards. However, it’s also important to put things into perspective: last week, for example, its ETFs experienced “shockingly high” capital inflows.
Earlier this week, Singapore-based cryptocurrency trading firm QCP Capital opined that a net negative result for the Bitcoin ETF would be a significant bearish signal. However, it is worth mentioning that other ETFs are still seeing smaller inflows.
The largest cryptocurrency is currently struggling to gain a footing above the $66,000 level.
