Bitcoin ETF

Bitcoin

April

<p>For the second consecutive day this week, net outflows from <a href="https://coingape.com/education/bitcoin-spot-etf/" target="_blank" rel="noopener">spot Bitcoin ETFs</a> persisted on Tuesday, April 16. According to data from Farside Investors, the total outflow from Bitcoin ETFs amounted to $58 million. Activity in the Bitcoin ETF market has generally been subdued in recent times.</p> 
<h3 id="gbtc-outflows-slow-down">GBTC Outflows Slow Down</h3> 
<p>The outflows from the Grayscale Bitcoin ETF GBTC have shown signs of slowing down this week. On Tuesday, April 18, the total GBTC outflows stood at $79.4 million. With this, the total outflows from the <a href="https://coingape.com/gbtc-outflows-surge-past-16-billion-defies-ceo-equilibrium-comment/" target="_blank" rel="noopener">Grayscale BTC ETF</a> currently stand at $16.46 billion. Interestingly, the Ark Invests’ Bitcoin ETF ARKB also registered net negative outflows to the tune of $13 million on Tuesday.</p> 
<p>While the outflows from the GBTC have slowed down in recent days, so have the overall inflows into spot Bitcoin ETFs. On Tuesday, the <a href="https://coingape.com/blackrock-bitcoin-etf-outpaces-gbtc-outflows-with-192m-influx/" target="_blank" rel="noopener">BlackRock ETF IBIT</a> recorded the highest net inflow among Bitcoin spot ETFs, amounting to approximately $25.78 million. Thus, the total inflows in BlackRock’s IBIT have now surged past $15.3 billion.</p> 
<h3 id="net-zero-inflows-in-bitcoin-etfs-a-concern">Net Zero Inflows In Bitcoin ETFs A Concern?</h3> 
<p>According to Bloomberg ETF analyst James Seyffart, it’s common for Bitcoin exchange-traded funds (ETFs) to experience days with zero inflows, and this shouldn’t be seen as a failure of the products. On a typical day, most United States ETFs, across various sectors, record zero inflows, which is a normal occurrence, said Seyffart.</p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr">Okay too many questions about <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> ETFs and zero flows — a few quick thoughts: </p> 
 <p>1. On any given day, the vast majority of ETFs will have a flow number of ZERO — this is very normal. There are ~3,500 ETFs in the US. Yesterday 2,903 of them had a flow of exactly zero</p> 
 <p>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1780243642851995735?ref_src=twsrc%5Etfw">April 16, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p>James Seyffart <a href="https://twitter.com/JSeyff/status/1780245406451957847" target="_blank" rel="noopener">explains</a> that shares within ETFs are generated or eliminated in creation units, which occurs only when there is a significant imbalance between supply and demand. This discrepancy must be substantial enough to warrant engaging with the underlying market and surpass the size of a creation unit.</p> 
<p>Creation units represent the batches in which ETF shares are formed and redeemed. Each ETF may have a distinct creation unit size. For instance, in the context of spot BTC ETFs, these units comprise blocks of shares ranging from 5,000 to 50,000 shares.</p> 
<p>Therefore, a creation or redemption transaction will solely transpire if there exists a significant disparity between supply and demand, and if the associated costs of executing such a transaction are lower compared to traditional market-making and hedging methods.</p> 
<p>The post <a href="https://coingape.com/bitcoin-etf-outflows-hit-58-million-gbtc-outflows-slow-down/">Bitcoin ETF Outflows Cross $58 Million, GBTC Outflows Slow Down</a> appeared first on <a href="https://coingape.com">CoinGape</a>.</p>

Bitcoin ETF Outflows Cross $58 Million, GBTC Outflows Slow Down

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