Fun

Grayscale’s Bitcoin ETF records lowest outflows since conversion

News Feed - 2024-02-26 04:02:54

Ana Paula Pereira4 hours agoGrayscale’s Bitcoin ETF records lowest outflows since conversionGrayscale’s GBTC posted $44.2 million in withdrawals on Feb. 23, marking its lowest daily volume since transitioning to an ETF.1797 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksGrayscale’s Bitcoin Trust (GBTC) has seen outflows reach their lowest point over the past few days, signaling a slowdown in withdrawal volumes. 


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.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 pic.twitter.com/1Q0OtjEJLt— BitMEX Research (@BitMEXResearch) February 24, 2024 GBTC Outflows


The significant exit from GBTC was anticipated. The spot Bitcoin ETF’s approval by the Securities and Exchange Commission on Jan. 10 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 was recently granted court permission to sell $1.3 billion in GBTC"s shares to reimburse investors. 


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:Bitcoin ETF guru Eric Balchunas has the last laugh at doubters: X Hall of Flame# Bitcoin# Business# Investments# ETFAdd reactionAdd reactionRead moreETH, UNI, FIL and GRT turn bullish as Bitcoin price hovers above $51KBlockchain cybercrimes trigger action from China’s national prosecutorTexas Blockchain Council and Riot secure win against US energy officials

News Feed

Thailand’s biggest crypto exchange goes on hiring spree ahead of IPO
Helen Partz12 hours agoThailand’s biggest crypto exchange goes on hiring spree ahead of IPOBitkub targets to go public on the Stock Exchange of Thailand in 2025 and is planning to hire 1,000 employees by IPO launch.592
Major VC Firm Sequoia Capital Marks FTX Investment to $0 — Says ‘Liquidity Crunch Has Created Solvency Risk for FTX’
Major VC Firm Sequoia Capital Marks FTX Investment to $0 — Says "Liquidity Crunch Has Created Solvency Risk for FTX" Venture capital giant Sequoia Capital is marking its investme
Tristan Greene2 hours agoResearcher envisions smart education system built with blockchain, DAOs, NFTs and AIAccording to the research, combining the technologies will result in 12 distinct advantages over the traditiona
Tom Mitchelhill51 minutes agoBlockchain.com $110M funding round halves its 2022 valuation: ReportDespite new investment in the crypto exchange, Blockchain.com’s valuation has more than halved from its $14 billion peak.
Chainlink Price Continues To Struggle Below $15 — Levels To Watch
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Simple Ledger Protocol Universe Is Thriving: Lottery, Mint, ATMs, Over 8,500 SLP Tokens Created
Simple Ledger Protocol Universe Is Thriving: Lottery, Mint, ATMs, Over 8,500 SLP Tokens CreatedIt’s been close to twelve months since we reported on the vast Simple Ledger Pro
Proof-of-Ink to boost Web3 adoption, Fed rate cut could spur DeFi summer: Finance Redefined
Zoltan Vardai4 hours agoProof-of-Ink to boost Web3 adoption, Fed rate cut could spur DeFi summer: Finance RedefinedGavin Wood introduced a major infrastructure development for Web3 citizenship, while Hashkey’s CEO fore
Martin Young4 hours agoImmutable links with AWS in latest Web3 gaming pushThe blockchain gaming firm said it will gain access to a vast pipeline of game studio leads and support for successful deal closures.1334 Total vi
Popular Hedge Fund Manager Paul Tudor Jones: ‘Bitcoin Reminds Me of Gold Back in 1976’
Popular Hedge Fund Manager Paul Tudor Jones: "Bitcoin Reminds Me of Gold Back in 1976"Hedge fund manager and investor, Paul Tudor Jones, discussed his opinion in regard to the crypt
Potential Trump victory and rising global liquidy may benefit crypto, analyst says
Marco Castrovilli7 hours agoPotential Trump victory and rising global liquidy may benefit crypto, analyst saysMacroeconomist Lyn Alden assesses the potential impacts of the 2024 US presidential election outcome on Bitcoi
Brazilian Presidential Candidate ‘Lula’ Da Silva Signals Support for Central Bank of Brazil Involvement in Crypto Regulation
Brazilian Presidential Candidate "Lula" Da Silva Signals Support for Central Bank of Brazil Involvement in Crypto Regulation The presidential candidate that obtained most of the vo
War Spurs Crypto Activity in Russia and Ukraine, Chainalysis Reports
War Spurs Crypto Activity in Russia and Ukraine, Chainalysis Reports The deadly conflict that started with Russia’s assault on Ukraine has increased crypto-related activity in bo