Grayscale's Bitcoin ETF Records Historic Low Outflow as Other ETFs Hit Two-Week Inflow High
Summary:
Grayscale's Bitcoin (BTC) spot Exchange-Traded Fund (ETF) experienced its third consecutive day of slowed net outflows, reaching a record low of $22.4 million. Meanwhile, other ETFs achieved a two-week net inflow high. Grayscale has observed 31 uninterrupted trading days of outflows since transforming into an ETF, with a total loss of $7.47 billion. Despite struggling to maintain momentum, Bitcoin ETFs, excluding Invesco and Galaxy, have seen over $6 billion in net inflows since launching on January 11th.
For a third consecutive trading day, Grayscale's Bitcoin (BTC) spot Exchange-Traded Fund (ETF) has experienced slowed net outflows, marking a historic low of $22.4 million. At the same time, the combined net inflow of all ETFs reached a two-week high. The data from Farside Investor, as of February 26th, reveals the Grayscale Bitcoin Trust (GBTC) witnessed a decreased rate of net outflows on February 22nd, 23rd, and 26th. The net outflow on the trading week's last day, Friday, was $44.2 million which fell by half on February 26th. GBTC's daily net outflows, beginning from January 11th, had their highest peak on January 22nd at $640.5 million.
However, since its transformation into an ETF on January 11th, Grayscale has observed uninterrupted outflows for 31 trading days, losing a total of $7.47 billion from the ETF. Adam Back, the CEO of Bitcoin technology company Blockstream, expressed anticipation for when GBTC would show an inflow, stating that it “could happen” but would require “just enough premium” to encourage ETF arbitrage.
Apollo Crypto's Chief Investment Officer, Henrik Andersson, aligned his view in a separate post, noting that the market would greatly benefit when Grayscale's fund posts its first net inflow.
According to Farside's February 26th data, aside from Invesco and Galaxy, the total net inflows for Bitcoin ETFs reached a two-week high of $515.5 million. The combined net inflow had previously peaked at $631.3 million on February 13th, but it struggled to sustain that momentum and even witnessed a net outflow of $35.6 million on February 21st, with GBTC attributing to a larger outflow day and other funds to smaller inflows. Since the launch on January 11th, these ETFs have seen over $6 billion in net inflows.
Fidelity's ETF registered most of the inflows on February 26th at over $243 million, approximately half of the day's total inflow. BlackRock's ETF, along with ARK Invest and 21Shares fund, contributed to the remaining half of the net inflow, with inflows of close to $112 million and over $130.5 million, respectively.
Published At
2/27/2024 9:10:32 AM
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