As Bitcoin (BTC) rebounds 12% from its local low, grayscale outflows drop 60%.
The Grayscale Bitcoin Trust ETF is seeing a slowdown in outflows as the price of BTC has recovered by double digits since last week.
The amount of money leaving Grayscale’s Bitcoin Trust ETF has been going down, according to data collected by Bloomberg analyst James Seyffart. Following its eleventh trading day on January 29th, $255 million departed the exchange-traded fund.
Ever since the fund reached $640.5M on its seventh trading day last week, outflows have been steadily declining.
Despite almost $5 billion leaving Grayscale’s Bitcoin ETF, spot Bitcoin ETFs absorbed $759.4 million in 11 trading days, according to Seyffart’s statistics. The iShares Bitcoin Trust, managed by BlackRock, has received approximately $2.2 billion in investment. The Fidelity Wise Origin Bitcoin Fund has received $1.9 billion, while the Ark 21Shares Bitcoin ETF has received $596 million.
A large portion of the massive withdrawals from Grayscale’s exchange-traded fund (ETF) were probably driven by investors who had purchased shares in the Grayscale Bitcoin Fund at a steep discount before it converted to an ETF.
As Digital Currency Group, owners of Grayscale, deals with the aftermath of Genesis Global’s bankruptcy, investors may be fleeing the fund for alternative exchange-traded funds (ETFs).
Grayscale is one of the biggest Bitcoin hodlers, after Binance and Satoshi Nakamoto, despite the fund’s severe outflows. Its Bitcoin holdings are $21.5B worth.
With Bitcoin’s price having recovered 12.4% from its January 23 low of $38,680, the recent drop in withdrawals may be the product of investors hoping to cash in on the cryptocurrency’s recent surge.
While $1.8 billion went into other spot Bitcoin ETFs last week, data from CoinShares shows that almost $2.2 billion left Grayscale’s ETF. Last week, CoinShares and other institutional crypto products announced that $500 million left the industry.
On January 29, there was $1.6 billion worth of trading activity among the 10 Bitcoin ETFs, according to Seyffart. This is only 6.8% of the entire volume for the last 11 days.
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