Grayscale’s Bitcoin ETF sees $394 million outflow on January 25

Grayscale’s Bitcoin spot exchange-traded fund (ETF) GBTC has experienced significant outflows in the past few days, as investors lose confidence in the crypto market amid a prolonged downturn.

According to data from Alpha Sosovalue, a platform that tracks ETF performance, GBTC had a net outflow of $394 million on January 25, with a single-day trading volume of $502 million. This indicates that more investors are selling their GBTC shares than buying them, reflecting a bearish sentiment towards Bitcoin and the crypto sector.

The net outflows from GBTC have slowed slightly over the past three trading days, compared to the previous week. GBTC saw net outflows of $429 million on January 24, $515 million on January 23, and $640 million on January 22. However, the cumulative net outflows from GBTC have reached a staggering $4.79 billion since its inception, according to Alpha Sosovalue.

Source: alpha.sosovalue.xyz

Despite the massive outflows, GBTC still holds $20.028 billion in net assets, making it the largest and most popular Bitcoin ETF in the world. GBTC allows investors to gain exposure to Bitcoin without having to buy, store, or manage the cryptocurrency directly. GBTC shares trade on the over-the-counter (OTC) market and are backed by Bitcoin held in a trust.

The outflows from GBTC come amid a sharp decline in the crypto market, which has seen Bitcoin lose more than 50% of its value since reaching an all-time high of over $69,000 in November 2021. The crypto market has been plagued by various factors, such as regulatory uncertainty, environmental concerns, hacking incidents, and market manipulation.

Some analysts have also attributed the outflows from GBTC to the emergence of new and cheaper Bitcoin ETFs that track the spot price of Bitcoin, rather than the futures price. These ETFs, such as the ProShares Bitcoin Strategy ETF (BITO) and the VanEck Bitcoin Trust (XBTF), have lower fees and premiums than GBTC, and trade on major stock exchanges, such as the NYSE and the Nasdaq.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like