Bitcoin ETFs Witness Outflows of $86M, Goldman Sachs Stays Skeptical
- Bitcoin ETFs experience a sudden downturn with nearly $86 million outflows, reversing last week's inflow trend.
- Goldman Sachs CIO Mossavar-Rahmani reiterates skepticism on Bitcoin, contrasting BlackRock and Fidelity's increased crypto endeavors.
Ever since the approval of the 11 spot Bitcoin ETFs in the U.S. by the Securities and Exchange Commission (SEC), the cryptocurrency sector has been buoyed by optimism. However, off lately, this optimism has waned due to some unexpected developments.
Following a March decline and modest rebound, net flows to Bitcoin ETFs have kicked off the week in the red. According to BitMEX Research data, investments saw outflows of almost $86 million on April 1.
Bitcoin ETF Flow - 01 April 2024
— BitMEX Research (@BitMEXResearch) April 2, 2024
All data in. $86m net outflow pic.twitter.com/XvBwCUYvVE
Last week witnessed significant inflows of over $100 million into various funds, but the trend is different this week. Graycale’s GBTC, in particular, saw significant outflows of $302.6 million. Despite being an SEC-approved Bitcoin ETF, investors keep withdrawing from it. This is a concerning matter and points to market volatility and investor hesitation.
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Meanwhile, the chief investment officer of Goldman Sachs, Sharmin Mossavar-Rahmani shared her take on Bitcoin. Mossavar-Rahmani has long been known for her skepticism of Bitcoin and other digital assets and even this time, she didn’t shy away from voicing her opinions.
“We do not think it is an investment asset class,” Mossavar-Rahmani told the WSJ, “We’re not believers in crypto.”
Earlier this year, BlackRock and Fidelity ramped up their crypto endeavors in response to client demand for bitcoin exposure. However, as per Mossavar-Rahmani, Goldman Sachs clients show no interest.
Edited by Harshajit Sarmah
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