Bitcoin ETF Outflows Narrow for Fourth Consecutive Day, Bloomberg Analyst Predicts End of Worst Case Scenario

Why did holders not immediately clear GBTC on the first day of the Bitcoin ETF listing? Bloomberg ETF analyst Eric Balchunas suggests that the selling pressure (net outflow) of GBTC may be related to bankruptcy size.

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Bitcoin ETF net outflows for four consecutive days
Continuous selling pressure on Grayscale GBTC
Is the selling pressure on GBTC coming from bankrupt institutions?
Bitcoin ETF net outflows for four consecutive days
Farside Investors
Data shows that the net outflow of Bitcoin spot ETF on March 21 decreased to -$94 million, with GBTC contributing -$358 million.
The total net outflows for the first three days were -$154 million, -$326 million, and -$261 million, respectively.
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Among them, BlackRock IBIT’s net inflow was much higher than the previous two days, which was the main reason for the reduction in net outflows today.
The data of each ETF is as follows (from high to low):
Grayscale GBTC: -$358 million
BlackRock IBIT: $233 million
Bitwise BITB: $12 million
Valkyrie BRRR: $4.7 million
Invesco BTCO: $4.2 million
Franklin EZBC: $3.8 million
Fidelity FBTC: $2.9 million
ARK Invest ARKB: $2 million
Vaneck HODL: $1.8 million

Continuous selling pressure on Grayscale GBTC
Grayscale GBTC was previously a closed-end fund, and investors had to go through a two-year lock-up period after purchase before they could redeem it, which led to a huge selling pressure on GBTC after its transformation into an ETF.
However, although GBTC experienced net outflows on the first day of the Bitcoin ETF listing on January 11, this was not a one-time sell-off, but a gradual outflow. GBTC has never had any net inflows to date.
Why did holders not immediately clear GBTC on the first day of the Bitcoin ETF listing?
Bloomberg ETF analyst Eric Balchunas
said that the selling pressure (net outflow) of GBTC may be related to bankruptcy size.

Eric Balchunas tweet
Is the selling pressure on GBTC coming from bankrupt institutions?
He pointed out that the net outflow of GBTC in February was relatively small and random, which resembled retail behavior, while other large outflows seemed to be liquidated GBTC from bankrupt institutions such as Genesis.
However, Eric Balchunas believes that even if there is selling pressure on GBTC, the market is still maintaining a certain level, which means that the worst-case scenario may be coming to an end, and any net outflows from GBTC may also have been transferred to BTC spot.
He expects that the net outflows of GBTC will come from sporadic retail investors in the near future, and the net outflow situation will be similar to that of February.

Daily net outflows of GBTC
GBTC
Bitcoin
Bitcoin ETF
Grayscale

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