Bitcoin ETF Roundup April 10: Grayscale Almost Stops Selling

ETF data from SoSoValue for April 10 suggests Grayscale’s selling pressure exhaustion, as the asset manager’s product recorded just $17.47 million in net outflow. The single-day net outflow was the lowest the GBTC ETF has ever recorded since its conversion from trust funds in January.

Flows on Wednesday also saw Fidelity’s FBTC outpace BlackRock’s IBIT in net inflow for the first time since April 3. Fidelity saw a net inflow of $76.31 million, while $33.27 million net flowed into BlackRock.

Aggregatively, the total net inflow into ETF products on Wednesday was $123 million, the first positive flow in the past three trading days. Monday and Tuesday saw a red net flow of $223.8 million and $18.7 million, respectively, as the crypto market continued its correction pre-halving.

Grayscale Exhaustion?

Although Grayscale has yet to record a net inflow since spot ETF trading went live in January, the persistent net outflows from the GBTC product have shown signs it would die down soon. Since April 1, Grayscale has seen a net outflow below $100 million in four days out of the eight trading days in the month, with Wednesday’s data seeing it record the lowest ever since inception.

The persistent outflow from Grayscale was tied to bankrupt exchange FTX liquidating its GBTC shares to settle customers in its ongoing wind-down process. Speaking on the outflow, Grayscale’s CEO, Michael Sonnenshein, noted that the selling pressure was “largely behind us.”

“We do believe that the fund has started to reach a little bit of an equilibrium where some of those anticipated outflows, whether it was some of the bankruptcy selling, some investors perhaps undertaking switch trades, (are) largely behind us,” Sonnenshein told Reuters on Wednesday.

Grayscale has recorded an outflow below its high of $642 million seen in March and has not reached that selling level since March 18. Wednesday’s $17.47 million outflow might signify that the outflows may finally end soonest.

Bitcoin Bounces

Bitcoin reacted positively to the first net inflow since this week, surging over 5% in the past 24 hours from as low as $67,598. At press time, Bitcoin is trading above $71,000 with a market cap of $1.4 trillion.

The broader market also saw gains, with BNB bouncing almost 10% to trade above $600. Ordinal token, ORDI, and memecoin DOGE also saw significant increments, posting 11% and 7% uptrends, respectively.