Reports says, after a turbulent end to March, Bitcoin exchange-traded funds (ETFs) are facing another setback as net flows turn negative at the start of the week. Data from BitMEX Research reveals that investments took a hit yesterday, with outflows totaling $85.7 million.
Just days ago, the market witnessed a surge in inflows, with over $100 million pouring into various Bitcoin funds for three consecutive days, amounting to a weekly total of $845 million. However, the previous week saw a different narrative, as all Bitcoin tracking funds experienced outflows attributed to investor hesitancy amid a downturn in crypto prices.
In the latest development, cash continued to enter most funds, except for Grayscale’s GBTC, which saw a staggering $302.6 million in outflows. GBTC, one of the 11 Bitcoin ETFs approved for trading by the U.S. Securities and Exchange Commission in January, has consistently faced investor withdrawals.
The primary reasons behind GBTC’s outflows are bankrupt crypto companies redeeming shares and investors shifting towards funds with lower fees. Notably, Grayscale’s entry carries the highest fees among all Bitcoin ETFs, prompting investors to seek alternatives.
While the pace of outflows appeared to be slowing, yesterday’s data indicates that the challenges persist for Bitcoin ETFs, with Grayscale’s GBTC bearing the brunt of investor withdrawals.
