TL;DR
- The Grayscale Bitcoin Trust (GBTC) has surpassed $20 billion in net outflows since converting to an ETF.
- BlackRock’s iShares Bitcoin Trust saw a resurgence with inflows of $15.8 million.
- Other US Bitcoin ETFs have seen positive inflows, highlighting a favorable day for the market.
The Grayscale Bitcoin Trust (GBTC) continues to face significant capital outflows, surpassing $20 billion in net withdrawals since its conversion to an exchange-traded fund (ETF) in January of this year.
On Monday, another $20.8 million in withdrawals were recorded, reflecting a persistent pattern of investor divestment.
According to data from Farside Investors, although the pace of these outflows has slowed compared to the earlier months, the outlook remains negative for the fund.
In the first two months after the GBTC conversion to an ETF, $10 billion were withdrawn.
However, the next $10 billion took over six months to withdraw, suggesting that investors have been more cautious but still don’t see clear reasons to hold their positions.
Currently, GBTC’s Bitcoin holdings have decreased to around 222,170 BTC, with an estimated value of $12.8 billion, highlighting the magnitude of the capital outflow in recent months.
Despite GBTC’s losses, the Bitcoin ETF market in the United States continues to show signs of strength.
On Monday, collectively, these funds attracted $12.8 million in net inflows, indicating that, despite withdrawals from some vehicles, general interest in Bitcoin ETFs remains positive.
The resurgence of other Bitcoin ETFs
One of the standout funds was BlackRock’s iShares Bitcoin Trust (IBIT), which after a period of stagnation managed to attract $15.8 million in new inflows.
This suggests that some investors see opportunities in alternative Bitcoin (BTC) products, possibly motivated by the backing and reputation of BlackRock in the financial sector.
Additionally, other prominent ETFs, such as those managed by Fidelity, Franklin Templeton, and VanEck, also experienced positive inflows, with each reporting around $5 million in net flows.
This trend shows that, despite market volatility, some specific products are managing to capture investor interest.
Interestingly, Grayscale’s own low-cost ETF also saw a small resurgence, with inflows reaching $2.8 million.
Although this pales in comparison to the enormous outflows from its main fund, it suggests that some investors remain interested in Grayscale’s offerings despite recent challenges.
While GBTC remains under pressure, the overall Bitcoin ETF market in the U.S. continues to show resilience, with funds like IBIT leading the way toward a potential recovery in terms of capital inflows.
