BTC Maintains $65K as GBTC Outflows Hit Highest Level Ever

Outflows of GBTC tend to add pricing pressure to bitcoin because of increased selling

AccessTimeIconMar 19, 2024 at 4:51 a.m. UTC
Updated Mar 19, 2024 at 4:53 a.m. UTC
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  • Bitcoin remains above $65,000 despite highest-ever GBTC outflows.
  • GBTC outflows are occurring due to high fees and ETF competition.

Bitcoin (BTC) is down 4% and trading above $65,000 as the selling of Grayscale Bitcoin Trust (GBTC) shares hit its highest level ever.

According to data compiled by BitMEX research, outflow from GBTC hit $643 million on March 18.

Data from investment firm Farside shows that there's a net outflow from bitcoin ETFs in general to the tune of $154 million. The iShares bitcoin ETF (IBIT) saw the most inflow of $451.5 million, while the remaining products had inflow of approximately $36.7 million.

(Farside Investors)
(Farside Investors)

Since the launch of bitcoin exchange-traded funds (ETFs) earlier this year, there have been significant outflows from GBTC – which recently converted into an ETF – because of its higher fees. This selling puts pressure on the price of bitcoin.

A recent note from CryptoQuant says that selling pressure is also coming from short term holders of bitcoin taking profit on recent gains.

Over the last week bitcoin is down 8.5%, according to CoinDesk Indicies data, but remains up 27% over the past 30 days.

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