withdrawals from Grayscale’s Bitcoin ETF (GBTC) have exceeded $5 billion since January 11
According to digital asset management firm CoinShares, withdrawals from Grayscale’s Bitcoin ETF (GBTC) have exceeded $5 billion since January 11, outpacing inflows into other funds.
While the pace of daily redemptions has slowed over the last week, indicating a slowdown in sales, GBTC’s net outflows stand at $2.2 billion, while U.S. bitcoin ETFs saw net inflows of only $1.8 billion.
According to CoinShares’ Chief of Research, James Butterfill, the slowdown in daily redemptions indicates a downward trend in GBTC outflows.
Notably, Coinbase Prime received $289 million in bitcoin from Grayscale on Monday, a significant reduction from the previous week’s average daily transfer size of $530 million.
Despite significant outflows from Grayscale’s Bitcoin ETF, analysts at JPMorgan expect a continued slowdown. On Friday, the spot Bitcoin ETF saw net sales of around $15 million. Similarly, BlackRock’s Bitcoin ETF sales have slowed.
Bloomberg Intelligence analyst James Seyffart notes that GBTC has seen withdrawals of more than $5 billion.
Other bitcoin exchange-traded funds, on the other hand, have seen gross flows of $5.8 billion, with a net inflow of $759 million in the eleven days following the ETFs’ introduction.
The BlackRock iShares Bitcoin ETF (IBIT) has surpassed $2 billion in assets under management (AUM), becoming the first Bitcoin ETF to reach this milestone.
James Wilson is a crypto writer and researcher with over 5 years of experience in the industry. He is a graduate of the University of California, Berkeley, where he studied computer science and economics. After graduating, he worked as a software engineer at a major tech company before transitioning to a career in crypto.
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