GBTC Records Lowest Daily Outflows Since ETF Conversion
Grayscale’s flagship Bitcoin Trust GBTC has just recorded the lowest daily outflows since it converted to an ETF.
According to data posted on X by the research arm of crypto exchange BitMEX, GBTC’s outflow on February 23 was just $44.2 million.
Bitcoin ETF Flow – 24 Feb 2024
All data now in, except perhaps for the Galaxy/Invesco product
Friday was a strong day, with +$232.3m of net inflow. Also, the outflow for GBTC was just $44m, lowest level since 11th Jan pic.twitter.com/1Q0OtjEJLt
— BitMEX Research (@BitMEXResearch) February 24, 2024
This marks its lowest daily outflow since launching as an ETF on January 11, when the Bitcoin investment fund recorded outflows of $95.1 million.
Altogether, Grayscale’s outflows have hit $7.4 billion. Other popular funds, like Blackrock and Fidelity, have attracted $6.6 billion and $4.7 billion in inflows respectively.
However, there are indications that another selloff is on the way. Recently, a bankruptcy court approved the bankrupt lender Genesis to sell $1.3 billion in GBTC shares to repay its creditors.
Parent company Digital Currency Group (DCG)—which has relinquished control over Genesis to independent advisers Kroll—has legally challenged the plan.
DCG objects to the plan on the grounds that it uses an accounting method whereby creditors (customers) could potentially get back their assets lost on the platform while also taking profit made from the assets’ increase in value since the lender applied for bankruptcy in early 2023.
DCG argues that the value of Genesis creditors’ claims must be based on crypto prices at the time its subsidiary made the filing.
Bitcoin was trading around $24,000 at that time. Today, it changes hands at over $51,000.
Grayscale’s GBTC is technically the largest ETF
