Bitcoin ETF Outflows Stabilizing as BlackRock Keeps Buying

The recent net outflows from Bitcoin ETFs appear to stabilize, even as redemptions persisted for five days as of March 23, 2024. However, the outflow magnitude moderated due to continued Bitcoin accumulation from institutional giants like BlackRock.

According to analyst Thomas Fahrer, the world’s biggest asset manager, BlackRock, bought 12,500 bitcoins this week. Many experts see BlackRock’s ongoing BTC investments as a bullish sign, suggesting the firm has long-term faith in Bitcoin’s success.

UPDATE Week 11 #BTC ETF Data

Total flows -13.5K #BTC

New ETFs + 17K #BTC

Highlights:

Blackrock +12.5K BTC
GBTC – 30.5K BTC
FBTC + 1.2K BTC
Bitwise +1K BTC

Follow our ETF Tracker for live updates pic.twitter.com/Sv5ZTk9pxD

— Thomas | heyapollo.com (@thomas_fahrer) March 23, 2024

While retail investors may have been spooked by recent volatility, sparking the temporary ETF outflows, BlackRock’s continued accumulation signals its conviction in Bitcoin’s prospects. As the crypto market navigates turbulence, the investment decisions of influential players like BlackRock could shape Bitcoin’s trajectory.

Genesis’ Liquidation Driving Bitcoin Fund Outflows

This week, Genesis crypto lender’s liquidation drove significant outflows from Bitcoin investment products. Grayscale’s Bitcoin Investment Trust (GBTC) saw massive outflows exceeding $170 million. This likely happened as Genesis finalized its sales of GBTC shares to pay creditors. However, the daily outflow rate slowed, potentially reducing the liquidation’s future impact.

Fidelity Investments, a major player in the Bitcoin ETF market, took a cautious approach, with just $79 million in inflows—far less than normal volumes. This signals that Fidelity may be waiting for more clarity on market direction before increasing purchases again after the volatility from Genesis.

Popular crypto analyst Whale Panda on Twitter expects Bitcoin’s price to stabilize for a period after the wild swings prompted by the Genesis liquidation news. As the market adjusts to the changes, Whale Panda believes BTC could resume an upward trajectory once the balance is restored. “The market is finding its new normal post the Genesis event. After consolidation, we could see Bitcoin’s price start climbing again,” Whale Panda stated.

Yesterday's Bitcoin ETF flows were negative for the 5th day in a row.$GBTC had $170 million of outflows. It seems like the Genesis liquidation is completely done now. A total of $2 billion in outflows this week.

Blackrock only had $18.9 million of inflows, their lowest to… pic.twitter.com/GVYv2K5z1T

— WhalePanda (@WhalePanda) March 23, 2024

Bitcoin Halving Could Boost Buyers

The imminent Bitcoin halving may benefit long-term Bitcoin buyers. Whale Panda, the analyst, estimates that absorbing new BTC supply after halving will require only around $28.8 million daily, compared to the current $57.6 million required at $64,000 per Bitcoin.

Moreover, the BTC ETF market has seen negative inflows lately, but outflows are slowing. Major players like BlackRock continue accumulating shares, signalling persistent demand despite volatility. The next few weeks are critical for this market to regain upward momentum.

We anticipate that the halving supply impact and evolving institutional interest will affect Bitcoin’s long-term investment prospects.

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