Grayscale’s GBTC Witnesses Significant Outflows Despite Slowing Pace

•  The U.S. bitcoin ETFs experienced net inflows of only $1.8 billion.
• The outflows from Grayscale’s BTC ETF “continue to slow,” according to JPMorgan analysts.

According to CoinShares, a digital asset management firm, withdrawals from Grayscale’s bitcoin ETF (GBTC) were higher than inflows into other funds, even if they slowed significantly during the last week.

According to the research, the U.S. bitcoin ETFs experienced net inflows of only $1.8 billion, while GBTC suffered $2.2 billion in net withdrawals through last week. According to CoinShares, crypto-focused funds had a net departure of $500 million when you include net withdrawals from worldwide vehicles.

Daily Redemptions Decreased

According to CoinShares’ chief of research James Butterfill, GBTC outflows have surpassed $5 billion since January 11th. However, daily redemptions have decreased over the previous week, indicating a slowdown in sales. Coinbase Prime received $289 million worth of bitcoin on Monday from Grayscale, according to blockchain statistics from Arkham Intelligence. This amount is about half of the average daily transfer size of $530 million last week.

The outflows from Grayscale’s bitcoin ETF “continue to slow,” according to JPMorgan analysts. On Friday, the spot bitcoin ETF saw net sales of around $15 million, according to analysts headed by Kenneth Worthington. Even though JPMorgan predicted a slowdown in Grayscale’s outflows, BlackRock’s bitcoin ETF sales have also slowed.

James Seyffart, an analyst at Bloomberg Intelligence, reports that GBTC has seen withdrawals exceeding $5 billion. But the other bitcoin exchange-traded funds have gross flows of $5.8 billion. The group has received $759 million in net inflows in the eleven days after the ETFs’ introduction.

The BlackRock iShares Bitcoin ETF (IBIT) surpassed $2 billion in assets under management (AUM) recently, making it the first spot bitcoin ETF to do so. Annual fees levied by issuers are one potential element impacting the attractiveness of capital.

Highlighted Crypto News Today:

Polkadot Flashes Bullish, How High Can DOT Go?