Bitcoin Price Drop Below $65K Triggers $643M Outflow from GBTC

Grayscale Bitcoin ETF Outflows

Grayscale’s spot Bitcoin exchange-traded fund (ETF), GBTC, has seen significant outflows recently. On March 18, a total amount of $643 million exited the Grayscale Bitcoin ETF, marking the biggest outflow for GBTC so far. This has led to a negative net flow of $154.4 million for spot Bitcoin ETFs on that day.

Reasons for Outflows

The high management fee of 1.5% for GBTC compared to competitors charging less than 0.3% could be a contributing factor to the outflows. Additionally, entities like Genesis Global Holdco LLC, facing bankruptcy, have been selling off their GBTC holdings.

Continued Trend

According to Bloomberg data, a total of $7.4 billion has exited the Grayscale Bitcoin Trust over its first 31 trading days. This contrasts with other recently launched spot Bitcoin ETFs that have seen net inflows.

Bitcoin Price Decline

Bitcoin’s price has been on a downward trend, currently trading at $64,661, reflecting a 5.92% decrease over the past 24 hours and more than a 10% decline compared to a week ago.

Market Response

Crypto.com CEO Kris Marzsalek views the Bitcoin price correction as a “healthy” move for the market, aiming to reduce leverage. Marzsalek predicts a steady ramp-up in the future to avoid sudden spikes and ensure a stable industry growth over the next 12 to 18 months.