GBTC Records Lowest Outflow Since Bitcoin ETF Approval


On Thursday, Grayscale Bitcoin Trust recorded its lowest bitcoin outflow, about 93% below the daily average, leading to the first productive inflow into bitcoin ETFs within the past three days.  

Since the bitcoin Exchange-Traded Funds (ETF) approval in January, many investors have opted out of Grayscale Bitcoin Trust (GBTC), shifting their investments to Fidelity’s FBTC or Blackrock’s IBIT. Grayscale has sold off close to 50% of its bitcoin holdings, with the highest daily outflow of about $643 million. 

Grayscale Records Lowest Outflow

As reported by Farside, Grayscale hit a new all-time low of GBTC outflows on Thursday. An outflow of about $17.5 million was recorded, close to 90% lower than the $154.9 million outflow recorded the previous day. On Thursday, the entire bitcoin ETF market recorded an inflow of $123.7 million.

GBTC has recorded sold about 300,700 bitcoins worth about $15.96 billion since January’s spot bitcoin ETF approval with a daily average outflow of $257.8 million.

With Thursday’s outflow very much below the daily average, Sonnenshein Grayscale CEO said, “We do believe that the fund has started to reach a little bit of an equilibrium where some of those anticipated outflows, whether it was some of the bankruptcy selling, some investors perhaps undertaking switch trades, (are) largely behind us.” 

Grayscale Takes Measures to Control Outflows

Moreover, Grayscale has earlier revealed the cause of the outflows and is taking the required steps to control them. Introducing the Mini GBTC with lower management fees and announcing a reduction in GBTC fees as soon as the bitcoin ETF market continues to progress are a few of the measures to control the rapid outflow. 

Although Grayscale has not recorded an inflow since January, Sonnenshein is confident that Grayscale will attract more investors and compete with other bitcoin ETF providers in no distant time.

Furthermore, bitcoin’s price has gathered bullish momentum. Although the U.S. Consumer Price Index (CPI) report pushed the price as low as $67,520, Bitcoin closed the day above $71,000 and is currently trading above the $70,000 mark.