Key Points
- U.S. Bitcoin ETFs saw $156 million in outflows last week due to a significant drop in BTC price.
- Grayscale’s GBTC experienced inflows as market conditions improved.
U.S. Bitcoin ETFs experienced a significant outflow of $156 million last week. This was largely due to a drop in the price of Bitcoin (BTC).
Market Drawdown and Recovery
A report from CoinShares indicated that the outflows were significant as the BTC price fell below the average buying price of the ETF issuers. This drop in price may have triggered automatic sell orders.
BTC hit a low of $56.5K on May Day, causing a significant market downturn and liquidations. Every U.S. spot BTC ETF experienced large outflows on May Day. Notably, BlackRock’s IBIT saw its first outflow since January.
Grayscale’s GBTC Sees Inflows
In contrast, Grayscale’s GBTC saw the first inflow of $63.9 million last Friday and confirmed another inflow on Monday worth $3.9 million. This surprising turn of events caught Bloomberg analysts off guard.
As BTC recovered from $56.5K to $65K, investor appetite increased, and net inflows hit $378.2 million last Friday. The U.S. BTC ETFs remained green on Monday and recorded another net inflow of $217 million.
At the time of writing, BTC was back in its previous price consolidation range of $60K—$71K but slipped below $64K after grabbing liquidity at $65.5K. If BTC’s recovery extends to the range-high, U.S. BTC ETFs could reverse last week’s $156 million outflows.
