Bitcoin saw a 5% decline on March 22 as spot ETFs continued to show negative numbers for the fourth day in a row, largely due to Grayscale GBTC exits.

SoSo Value reported that 10 spot Bitcoin (BTC) ETFs experienced $93.8 million in cumulative single-day outflow on March 21. Grayscale’s GBTC led the way in BTC ETF share liquidation, totaling $358 million.

Bloomberg’s James Seyffart confirmed that Grayscale’s BTC ETF has seen almost half of its shares sold off following the approval of spot BTC ETFs on Jan. 11. Seyffart, along with analyst Eric Balchunas, suggested that some of GBTC’s liquidation could be linked to Gemini and Genesis. Additionally, FTX, a crypto exchange, liquidated $2 billion in Grayscale shares back in January.

This is a good point from Eric. Gemini/Genesis accounted for something like 68+ mln shares of $GBTC. Which is like $4 bln at today’s prices. That could still be coming out now.

Outflows from GBTC overshadowed inflows into eight other products. BlackRock’s BTC ETF attracted over $223 million in demand, with Bitwise following with $12 million injected into the fund. Data revealed that WisdomTree did not receive inflows for at least the second time.

Bitcoin retraced over 8% in the past week after dropping below $63,000, according to CoinMarketCap. BTC has fallen 14% from its all-time high of $73,750 set on March 14. The cryptocurrency was trading around $62,900, approximately a month away from its quadrennial halving event.

Investment advisor at neobank Keytom, Evgeny Filichkin, expressed the belief that the halving event, combined with the demand for spot BTC ETFs, will lead to a supply shock and potentially trigger a parabolic run.

Following the halving event, the supply of new BTCs will decrease, causing market dynamics to intensify. With increasing demand and limited availability, the heightened scarcity will amplify Bitcoin’s appeal, driving further investment interest.

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