Bitcoin ETF

Bitcoin

Grayscale’s Bitcoin Trust (GBTC) has seen outflows&nbsp;reach their lowest point over the past few days, signaling a slowdown in withdrawal volumes.&nbsp;
According to data from BitMEX Research, GBTC had withdrawals of $44.2 million on Feb. 23, the lowest daily volume since its conversion on Jan. 11 from an over-the-counter product to an exchange-traded fund (ETF). 
By the end of January, GBTC reported withdrawals totaling $5.64 billion, with a significant $640 million exiting on Jan. 22 alone. February has seen a decline in outflows, amounting to $1.8 billion so far. Since its inception, GBTC has witnessed a total withdrawal of $7.4 billion.
In contrast, BlackRock’s IBIT has amassed over $6.6 billion in investment since launching, followed by Fidelity’s FBTC with over $4.7 billion in capital. The third position is held by ARK 21Shares, with inflows of $1.4 billion over the same period.
<blockquote class="twitter-tweet">
 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 <a href="https://t.co/1Q0OtjEJLt">pic.twitter.com/1Q0OtjEJLt</a>— BitMEX Research (@BitMEXResearch) <a href="https://twitter.com/BitMEXResearch/status/1761307758173851758?ref_src=twsrc%5Etfw">February 24, 2024</a>
</blockquote> 
<h3 data-ct-non-breakable="true" id="gbtc-outflows">GBTC Outflows</h3>
The significant exit from GBTC was anticipated. The spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) ETF’s <a href="https://cointelegraph.com/news/sec-spot-bitcoin-etf-approvals">approval by the United States Securities and Exchange Commission on Jan. 10</a> opened the door for GBTC holders to convert and redeem their shares. Previously, investors had to sell shares on the secondary market to exit positions. 
According to analysts, investors have also rebalanced their portfolios and migrated to Bitcoin ETFs with lower fees in recent weeks. GBTC charges a 1.5% annual management fee, whereas other issuers charge as little as 0.19%.
Grayscale’s Bitcoin fund may have another challenge ahead. The bankrupt crypto firm Genesis Global Holdco <a href="https://cointelegraph.com/news/genesis-gbtc-shares-bankruptcy-court">was recently granted court permission to sell $1.3 billion</a>&nbsp;in GBTC’s shares to reimburse investors.&nbsp;
The massive outflows, however, may be counterbalanced by Grayscale’s fee structure. “They can have assets chopped by like 90% and still make more than all of the other issuers combined,” noted ETF Store president Nate Geraci on X (formerly Twitter).
Magazine: <a href="https://cointelegraph.com/magazine/bitcoin-etf-guru-eric-balchunas-last-laugh-doubters-x-hall-of-flame/">Bitcoin ETF guru Eric Balchunas has the last laugh at doubters: X Hall of Flame</a>

Grayscale’s Bitcoin ETF records lowest outflows since conversion

Table of Contents

Cointelegraph

Other articles published on Feb 25, 2024

Top 8 Altcoins Powering the Mini Crypto Bull Run – Kaiko Reports

Mengurai Pola Pasar Kripto: DOGE, Memeinator dan BlockDAG

Shiba Inu’s new NFT marks this milestone: Impact on SHIB?

ADA And XRP Shock Bears With Uptrend – Rebel Satoshi ($RBLZ) Presale Makes Huge Progress Towards ...

Crypto venture capital soars as profits make 50% and more

Piers Morgan Responds to Deepfake Incident

Join our free newsletter for daily crypto updates!