Earlier in the week, GBTC faced outflows for its Spot Bitcoin ETF totaling well over $450 million. However, the outflow dramatically decreased by Wednesday. In turn, some analysts believe that this hints at a possible market stabilization. With outflows slowing for Spot Bitcoin ETFs, is Bitcoin (BTC) preparing for a new surge?
As the Bitcoin Halving nears, the leading cryptocurrency is expected to surge dramatically. At press time, Bitcoin is up over $70,000, a 7% rise in the past week. Furthermore, Bitcoin reached as high as $72,000 on April 8, and since has stayed around the $70,000 mark. This is after the asset failed to breach that mark for some time following a bearish market. Now, Spot Bitcoin ETFs may start seeing significant inflows again.
Michael Sonnenshein, CEO of Grayscale Investments, believes that these outflows are nearing an equilibrium. This sentiment offers a glimmer of hope for the Bitcoin ETF’s financial health.
“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 said to Reuters.
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Other Bitcoin ETFs have seen boosts to inflows, including IBIT and Fidelity’s FBTC. Also, Bitwise’s BITB and ARK 21Shares’ ARKB experienced inflows, adding to Wednesday’s total net inflow of $123.7 million.
Furthermore, Bitcoin ETFs have boomed since SEC approval in January 2024. The BTC Halving scheduled for next week will likely cause further inflow for Spot Bitcoin ETFs like GBTC, and a boom for Bitcoin and the entire cryptocurrency market.