Grayscale’s Bitcoin Reserves to Deplete in 4 Months with Unprecedented ETF Withdrawals

Bitcoin ETFs in the United States experienced their highest combined outflows ever on March 19, with a total of $326 million withdrawn from the 10 funds. Grayscale’s Bitcoin Trust (GBTC) reported over $23.7 billion in assets under management as of March 19. If the outflows continue at the current rate, the fund could run out of assets by late July. On that day, GBTC saw net outflows of $443.5 million, with only BlackRock, Fidelity, and Bitwise’s ETFs attracting net inflows. The three funds collectively received $117.3 million in net inflows, which is the second-lowest inflow day for the nine new Bitcoin ETFs excluding GBTC. BlackRock’s iShares Bitcoin Trust (IBIT) had the largest net inflows of $75.2 million, while the Fidelity Wise Origin Bitcoin Fund (FBTC) received $39.6 million. The Bitwise Bitcoin ETF (BITB) had the lowest net inflows on record at just $2.5 million, excluding days with zero new inflows. The outflows exceeded the previous record set on January 24, with $158.3 million withdrawn. This marks the second consecutive day of net outflows for the funds. The outflows coincided with Bitcoin’s price dropping to as low as $62,400 on March 19, following its recent all-time high of $73,835 on March 14. In the past 24 hours, Bitcoin has fallen 5.4% and is currently trading at $61,173. On March 18, GBTC experienced its largest net outflow day of $642.5 million. Since January 11, when it transitioned from a trust to an ETF, the fund has seen outflows totaling nearly $12.9 billion in the span of 49 trading days.