GBTC Outflows Drop to The Lowest In A Month, Bitcoin Price Rally Ahead?

After a week of outflows in March, the spot Bitcoin ETFs are finding a strong footing again with inflows turning positive. The good thing is that the outflows from Grayscale Bitcoin ETF GBTC have also been on a declining trend. The daily GBTC outflows stood under $100 million for the second consecutive day on Wednesday, April 3.

GBTC Outflows Ebb

On the 3rd of April, the total outflows from the Grayscale Bitcoin ETF GBTC dropped to $75 million. This is the lowest amount of outflows from the Bitcoin fund ever since February 26.

During Wednesday’s activity in the Bitcoin ETF market, Blackrock’s IBIT ETF made a notable purchase of $42 million, marking consistent buying behavior observed since every Bitcoin ETF launch. Additionally, FBTC recorded a significant purchase of $117 million, representing its highest acquisition volume since March 26. Thus, the total inflows across all the Bitcoin ETFs stood at a staggering $113 million.

Besides, the overall activity seems to be turning positive once again showing that the institutional interest in Bitcoin remains intact.

Bitcoin Institutional Inflows

Amid the growing institutional interest in Bitcoin, the futures market hints a potential volatility going ahead. According to CryptoQuant, the increasing Coinbase Premium serves as a distinct indicator of heightened Bitcoin purchases by US institutions. This premium, reflecting the price variance between Coinbase and international exchanges, underscores robust institutional involvement, particularly amid the surge in inflows into US Bitcoin ETFs.

Courtesy: CryptoQuant

Furthermore, the data also shows that there’s a significant movement of Bitcoins off the exchanges totaling nearly 18,828 BTC. This suggests that institutions could be potentially transferring their holdings to private wallets or cold storage which could trigger a supply shock going ahead.

CryptoQuant has underscored the remarkable duration of positive bitcoin futures funding rates, signaling a robust bullish sentiment. Historically, such optimism has often been followed by price corrections, implying that a potential buying opportunity may emerge in the near future.

Courtesy: CryptoQuant

Based on the positive setup from this institutional activity surrounding BTC, there’s a great likelihood of a Bitcoin price rally ahead after the recent healthy correction. Furthermore, the Bitcoin halving event this month will bring an additional supply shock for BTC.

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