Bitcoin Spot ETFs Witness Largest Single-Day Outflow, Grayscale Leads in Net Outflows

Bitcoin Spot ETFs trend chart showing net outflows.

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Unprecedented Single-Day Outflow for Bitcoin Spot ETFs

On January 24, the cryptocurrency market witnessed a significant event as Bitcoin spot ETFs experienced their largest single-day net outflow, totaling $159 million. According to analytics platform Alpha, this marks a milestone since the launch of these ETFs.

Grayscale ETF Leads in Net Outflows

Grayscale has taken the lead in net outflows among the Bitcoin spot ETFs, with a total of $429 million since the fund’s inception. In contrast, all other ETFs, excluding Grayscale, reported net inflows amounting to $270 million.

Decreasing Outflows for Grayscale Bitcoin Trust (GBTC)

Despite being a leader in net outflows, Grayscale Bitcoin Trust (GBTC) has seen a consecutive decrease in outflows for the second day in a row. This reduction represents the lowest figure since the introduction of spot Bitcoin ETFs in the United States.

Bloomberg Analyst Observations

Bloomberg analyst Eric Balchunas noted the decreasing outflows from GBTC, describing it as a “downward trend.” However, he highlighted that liquidations remain substantial. On January 23, outflows reached $515 million, and on the 22nd, they amounted to $640 million, as reported by CC15Capital.

$GBTC volume down again today.. could be sign of some exhaustion in the selling (same thing happens in stocks, $SPY volume goes up w selling, down w peace). We’ll see tonight tho. And I’m only reporting on shares out data sent by their admin to BBG. Only thing you can 100% trust. pic.twitter.com/m9uRs7tBr5
— Eric Balchunas (@EricBalchunas) January 24, 2024

Grayscale Bitcoin Trust’s Recent Losses

Over nine trading days, Grayscale Bitcoin Trust experienced significant losses, with an outflow of 106,092 BTC valued at approximately $4.4 billion. The decline underscores the dynamic nature of the cryptocurrency market.

CEO’s Perspective on Spot Bitcoin ETFs

Despite the recent trends, Grayscale CEO Michael Sonnenshein expressed skepticism about the success of spot Bitcoin ETFs. He believes that of the 11 ETFs approved by the U.S. Securities and Exchange Commission (SEC), only “two or three exchange-traded funds will probably achieve some critical mass.”

As the cryptocurrency investment landscape evolves, the latest developments in Bitcoin spot ETFs and Grayscale’s outflows reflect the dynamic nature of investor sentiment and market trends. Investors and analysts are closely monitoring these shifts for insights into the future of cryptocurrency investment.

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