Bitcoin ETFs Return To Outflows Amid GBTC Sale Revival
Bitcoin ETFs had their first day of net negative outflows for the month of February on Wednesday– a possible sign that hype around the investment vehicles is starting to die down.
According to data compiled from BitMEX Research, the Grayscale Bitcoin Trust (GBTC) suffered $199.3 million of outflows on Wednesday, marking its largest daily outflow since January 30. This outstripped inflows to all other Bitcoin ETFs combined, with many seeing zero flows on the day.
By comparison, BlackRock’s fund saw $96.5 million of flows, and Fidelity had $52.5 million of flows. In total, all ETFs experienced a net outflow of $35 million.
The last net outflow day for the ETFs was on January 25, while the crypto market was still in “sell the news” mode after the ETFs went live just two weeks prior. BTC traded for roughly $39,900 at the time, but has since rocketed to $52,000 amid a strong wave of ETF inflows over the following month.
Grayscale has suffered nothing but outflows since converting into an ETF, with many early investors cashing out on a former arbitrage between the value of its shares and its underlying BTC. Meanwhile, those trading back into BTC have little incentive to buy back GBTC now that BlackRock’s ETF is available, whose shares carry a much lower management fee and trades with rivalrous volume.
This is the first outflow day for the group since January 25th.
If you want to view this chart on the terminal it can be loaded by anyone at {G #BI 124590<GO>}. pic.twitter.com/2wAhmL63f0
— James Seyffart (@JSeyff) February 22, 2024
That’s not all: bankrupt crypto lender Genesis – which shares a parent company with Grayscale in Digital Currency Group (DCG) – was approved earlier this month to liquidate over $1.3 billion worth of its
