Bitcoin ETFs see $55m net outflow, as BTC drops to $65k

Spot Bitcoin ETFs, or exchange-traded funds, saw a net outflow of $55 million on Friday, April 12.

The data indicates a turnaround following two days of roughly $215 million in inflows into ETFs. 

Bitcoin ETFs ahead of halving

SoSo Value data shows that Grayscale's GBTC experienced the biggest withdrawal on Friday, with $166 million taken out.

Prior to the halving, GBTC continues to witness significant withdrawals; on Monday, April 8, the ETF lost $154.9 million.

On Friday, however, BlackRock IBIT saw the most inflow, drawing $111 million into the ETF.

The cryptocurrency market has clearly felt the effects of Friday's withdrawal. In the last day, Bitcoin fell by about 5%, reaching $65,000. The liquidation of roughly $900 million was followed by the whole market.

Last week, there were three days of net outflows from Bitcoin ETFs, with $298.4 million in money leaving the market.

Total spot Bitcoin ETF net inflow | Source: SoSo Value

Michael Sonneshein, CEO of Grayscale, is upbeat despite the recent withdrawals from GBTC. Sonneshein has recently highlighted that it is likely that the withdrawals from GBTC have found equilibrium. He thinks that when Grayscale lowers the fees associated with its Bitcoin ETF, the outflow will dramatically diminish.

Another reason for the ongoing withdrawals from the ETF market could be a pre-halving decline. It's widely expected that the biggest cryptocurrency will see a bigger bull market following the halving of its value. Thus, a pullback happens when investors begin to take short-term profits and then reinvest when the market declines. 

Though Marathon Digital previously forecast that BTC has already achieved its top following the legalization of ETFs earlier this year, it's also possible that investors are wary about the halving failing to produce significant rallies like prior years.