In the wake of last week's significant outflows, spot Bitcoin exchange-traded funds (ETFs) are experiencing renewed net inflows this week. On Thursday, March 28, all nine spot Bitcoin ETFs collectively recorded an inflow of $178 million. Notably, there was a notable decrease in outflows from the Grayscale Bitcoin ETF (GBTC), which recorded $105 million in outflows, marking a 60% drop from the previous day.

GBTC Registers Lowest Outflows in March

March has seen substantial outflows from the Grayscale Bitcoin ETF. However, on Thursday, GBTC observed its lowest outflow since March 12.

According to data from Farside Investors, over $14.6 billion worth of Bitcoins have been withdrawn from GBTC since the launch of the Bitcoin ETF. GBTC has seen a reduction of over 50% in its Bitcoin holdings since the start of the year, currently valued at $340,000.

A significant factor contributing to these high outflows from GBTC is its management fee, which stands at a high 1.5%. Investors have been shifting funds from GBTC to other Bitcoin ETFs, such as BlackRock and Fidelity, which offer lower management fees. BlackRock's IBIT Bitcoin ETF has seen substantial inflows of $13.8 billion and is poised to surpass GBTC in total assets under management (AUM).

Will GBTC Outflows Decrease Soon?

Acknowledging the concern over its high management fees, Grayscale plans to reduce them in the near future. CEO Michael mentioned last week that GBTC fees would decrease over time, although the extent of the reduction was not specified.

Additionally, analysts at Bloomberg suggest that the significant outflows from GBTC may be attributed to large liquidations by bankrupt entities like Gemini, seeking to repay creditors. Consequently, the selling pressure on GBTC is expected to ease over time.

However, with major players like BlackRock and Fidelity already dominating the market, Grayscale faces tough competition ahead.

Thus, if GBTC outflows continue to decline and inflows persist, a potential relief rally for Bitcoin could be on the horizon.