On March 21, Grayscale's Grayscale Bitcoin Trust (GBTC) recorded another $359 million worth of outflows. GBTC's massive outflows have been the main bearish narrative as of recently.
Who's behind the massive outflows?
ETF analyst Eric Balchunas believes that the massive uptick in outflows could be related to bankruptcies due to their sheer "size and consistency."
Even though there is some speculation about retail investors potentially jumping ship due to declining Bitcoin prices, Balchunas has noted that outflows would have been smaller and more random in such a case.
Retail-driven outflows, for instance, were observed in February, according to the analyst.
Balchunas has added that the worst might be already over, and retail is extremely unlikely to match these outflows alone.
"Takeaway: the worst is prob close to being over. Once it is, only retail will be left and flows should look more like the Feb trickle," he added.
A bearish signal?
Speaking of the waning inflows recorded by the likes of BlackRock and Fidelity, the expert has acknowledged that they are "low" for their standards. However, it is also important to put things into perspective: last week, for instance, their ETFs experienced "outrageously" high inflows.
Earlier this week, Singapore-based cryptocurrency trading firm QCP Capital opined that a net negative for Bitcoin ETF would be a significant bearish signal. Yet, it is worth mentioning that other ETFs are still seeing minor inflows.
The largest cryptocurrency is currently struggling to gain a footing above the $66,000 level.
Godfrey Benjamin
Mushumir Butt
Gamza Khanzadaev
