Bitcoin Price Soars as GBTC Outflows Plummet to $170M

Bitcoin may be experiencing a shift in momentum as institutional outflows decrease. The latest data suggests that the Grayscale Bitcoin Trust (GBTC) lost $170 million on March 22. This comes as the United States Spot Bitcoin exchange-traded funds (ETFs) have seen a decline in inflows and a record high in outflows, resulting in consecutive days of reduced assets under management. Speculation suggests that the timing of this trend is not accidental, as crypto lender Genesis is rumored to have been selling its GBTC position. If this is true, the downward pressure on ETF trends could ease.

Investor and entrepreneur Alistair Milne noted that net flows out of Bitcoin ETFs have dropped, with a significant slowdown in GBTC selling. This could indicate a turning point in momentum. Statistician Willy Woo also believes that the worst phase of offloading may be over, based on a new model comparing ETF inflows with BTC price action. Pseudonymous commentator WhalePanda agreed with this assessment, suggesting that there could be tailwinds for a return to price discovery by next week.

Some critics have been more critical of GBTC, which has seen a significant decrease in assets under management since converting to an ETF in January. They argue that GBTC was at the center of the market collapse in 2022 and is currently the biggest headwind to Bitcoin. Spot Bitcoin products as a whole have been successful, with cumulative flows reaching $12.15 billion since their launch. There is optimism that the bulk of institutional exposure is yet to come.

The recent data suggests that Bitcoin’s momentum may be turning as institutional outflows recede. The decline in inflows and record high outflows of GBTC have been a cause for concern, but if the rumors of Genesis selling its GBTC position are true, the downward pressure on ETF trends could ease. Experts believe that the worst phase of offloading may be over, and there could be tailwinds for a return to price discovery in the near future. Critics argue that GBTC is currently the biggest headwind to Bitcoin and that the ecosystem would be healthier without it. Despite this, spot Bitcoin products as a whole have been successful, and there is optimism that institutional exposure will continue to grow.