Another day of strong inflows into other funds has brought Grayscale’s ETF losses to a halt. These funds are now at their highest level in two weeks.
While overall ETF inflows reached a two-week high, the spot Bitcoin ETF from Grayscale set a new low of $22.4 million, marking the third day in a row of declining net outflows.
According to statistics compiled by Farside Investor on February 26, the Grayscale Bitcoin Trust (GBTC) had three consecutive days of decreasing net outflows on February 22, 23, and 26. Daily net outflows decreased by half on February 26, and they hit $44.2 million at the conclusion of the trading week on Friday.
On the other hand, since becoming an ETF on January 11, Grayscale has had 31 consecutive trading days of withdrawals, draining a total of $7.47 billion from the fund.
In a post he made on X on February 26, Blockstream CEO Adam Back said, “I’m waiting for the day GBTC displays an influx.”
It “might happen,” Back said, but “just enough premium” would be required to encourage arbitrage of the ETF.
In a separate X post, Henrik Andersson, chief investment officer of asset management at Apollo Crypto, agreed, saying that the market will take notice the first time Grayscale’s fund registers a net inflow.
While this was happening, the cumulative net inflows of all Bitcoin ETFs (excluding Invesco and Galaxy’s) reached $515.5 million, the highest level seen in two weeks, according to Farside’s statistics for February 26.
The ETFs reached a total net inflow of $631.3 million on February 13 but haven’t been able to sustain that level of activity. On February 21, for example, there was a net outflow of $35.6 million because of a much higher outflow from GBTC and lesser inflows to other funds.
On February 26, over half of the net inflows for the day came from Fidelity’s ETF, which received almost $243 million. Aside from January 17th, this is the second-highest inflow day in FBTC history.
An additional $130.5 million and roughly $112 million, respectively, came from the 21Shares fund and BlackRock’s ETF, making up the other half of the net inflow.
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