Grayscale Bitcoin ETF Sees Historic Low Outflow: Just $18M in a Day!

Grayscale's bitcoin (BTC) exchange-traded fund (ETF) witnessed a record-low daily outflow of $18 million on Wednesday, marking a significant downturn since its inception in January. The data, reported by Bitmex Research and Farside Investors, reflects a notable shift in investor sentiment.

CEO Michael Sonnenshein stated that the Grayscale Bitcoin Trust (GBTC) could be reaching an "equilibrium" in outflows. He attributed this stabilization to decreased selling activity linked to settlements of bankrupt crypto entities like FTX, suggesting that the worst might be over.

Analysts from Coinbase Institutional suggested that the surge in GBTC selling could be partly attributed to Genesis liquidating shares as part of its bankruptcy proceedings. This additional selling pressure has contributed to the ongoing outflows from the GBTC product.

Since its launch, the GBTC product has experienced nearly $15 billion in bitcoin outflows, with outflows occurring almost every week. This consistent trend has added to the downward pressure on the asset. Moreover, the ETF imposes the highest annual fees compared to its counterparts, standing at 1.5% of holdings, whereas competitors like Franklin Templeton’s EZBC charge as low as 0.19%.

Market Performance: Bitcoin is currently trading slightly above $70,600 during European morning hours, marking a 2.2% increase in the past 24 hours. Meanwhile, the CoinDesk 20 index, representing a broad spectrum of cryptocurrencies, has gained 1.7%.