Grayscale Bitcoin ETF Outflows Slow Down

As of February 26, the assets under management of the Grayscale Bitcoin Trust ETF (GBTC) amounted to $24.2 billion. Since its conversion into an exchange-traded fund, the structure has lost $7.5 billion in AUM.

[1/3] Bitcoin ETF Flow — 26th Feb 2024

All data in. Strong day with $520m net inflow

Total net inflow since 11th Jan is $6,030m. pic.twitter.com/Iz4khAzEev

— BitMEX Research (@BitMEXResearch) February 27, 2024

Following its conversion to a spot Bitcoin ETF, outflows from GBTC persisted. However, in recent days they have slowed, amounting to $22.4 million as of February 26.

Blockstream CEO Adam Back wrote that he is waiting for GBTC to signal an inflow of assets.

According to Apollo Crypto’s Chief Investment Officer Henrik Andersson, this event will be a “mega signal” for the market.

First time $GBTC post a black number will be a mega signal to the market. https://t.co/LaRyaSU7WG

— Henrik Andersson (@phenrikand) February 26, 2024

Bloomberg analyst James Seyffart noted that the outflow from Grayscale’s Bitcoin fund on February 26 was at a record low since trading began on January 11.

Overall, nearly $520 million flowed into exchange-traded structures based on the spot price of cryptocurrency in a single day.

In total, Bitcoin ETFs hold 123,729 BTC, which is approximately 6.3% of the total market supply of digital gold.

Earlier, trading volume for GBTC’s competitors reached a peak of $2.4 billion since the SEC approved the products.