Bitcoin ETF posts $76M in ‘bad’ net outflows on 76th trading day

Spot bitcoin (BTC) exchange-traded funds (ETFs) saw $76 million in net outflows in their seventh straight day, according to new data from Bloomberg ETF analyst James Seifert.

In a post on X (formerly Twitter) on January 23, Seifert wrote that it was a “bad day” for Bitcoin ETFs in general in the “Cointucky Derby”, noting that Grayscale has the largest net flow among ETFs.

Update: BlackRock's numbers are in for the #Bitcoin ETF Cointucky Derby. Third biggest grossing day for $IBIT at $272 million. Only – $76 million net flow for the day. pic.twitter.com/RzgH6qn5Md

— James Seyff (@JSeyff) January 23, 2024

“$640 million has gone out today. Spending streams aren't going down — they're going up. This is the biggest outflow for GBTC so far. The total so far is $3.45 billion,” Seifert added.

Speaking to Cointelegraph, Seifert said overall inflows into the space remained positive for Bitcoin ETFs, with BlackRock enjoying its third-largest day of positive inflows to date, totaling $272 million in inflows per day.

“Even after counting the outflows from GBTC on a net basis, we saw more than $1.1 billion flowing into bitcoin ETFs,” he said.

While Seifert's outflow from GBTC appears to be “unabated,” he expects GBTC-led waste to cool off in the next two weeks.

Most of Greyscale's recently converted GBTC fund is tied to the sale of FTX assets.

RELATED: Alameda Research grapples with grayscale as GBTC sees breakouts

According to a report on January 22, citing sources familiar with the matter, FTX State has loaded two-thirds of its 22.8 million GBTC shares on January 22. The stock sale is estimated to be worth about $600 million of the total. A net of $3.4 billion in GBTC-related outflows.

$GBTC sold >$2 billion after conversion to #BitcoinETF investors

FTX's bankruptcy filing resulted in >$1 billion worth of BTC being sold.

GBTC discount for NAV arbitrage trading to >$1 billion to lock in profits.

All that for a relatively short sale and… pic.twitter.com/e0I0ms3y3D

— CJK (@CJKonstantinos) January 22, 2024

After the approval of the 10-spot EFAs on January 10, the price of Bitcoin fell sharply, falling from a high of $49,100 to $39,500 on January 23. Bitcoin is currently hovering above $40,000, the data shows. From TradingView.

Notably, Bitcoin's downward price action comes on the heels of a sudden and sharp decline in demand for Bitcoin futures on the Chicago Mercantile Exchange (CME), a waning appetite among institutional investors to gain exposure to Bitcoin.

According to data from CoinGlass, open interest on the CME fell from a record high of $6.4 billion on January 12 to $4.4 billion at the time of publication.

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