Updated February 27th, 2024 at 13:27 IST

Grayscale’s spot Bitcoin ETF’s outflows record third consecutive decline

Combined net inflows of all Bitcoin ETFs, excluding Invesco and Galaxy, reached $515.5 million, marking the highest figure in two weeks.

Reported by: Business Desk
Grayscale | Image:Republic
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Grayscale Bitcoin ETF outflows: Grayscale's spot Bitcoin exchange-traded fund (ETF) has experienced its third consecutive trading day of decreasing net outflows, reaching a record low of $22.4 million, while ETFs collectively saw a two-week high in net inflows.

According to data from Farside Investor on February 26, the Grayscale Bitcoin Trust (GBTC) witnessed three consecutive days of diminishing net outflows on February 22, 23, and 26. The trading week concluded with a daily net outflow of $44.2 million on Friday, further decreasing to half on February 26.

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Image credit: Farside

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Since its conversion to an ETF on January 11, Grayscale has recorded 31 consecutive trading days of outflows, totalling $7.47 billion drained from the ETF. Daily net outflows for GBTC peaked on January 22 at $640.5 million.

Blockstream CEO Adam Back shared on X on February 26 that he anticipates the day when GBTC displays an inflow, suggesting that it could occur with just enough premium to incentivise traders to arbitrage the ETF. 

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Meanwhile, Farside's data for February 26 revealed that the combined net inflows of all Bitcoin ETFs, excluding Invesco and Galaxy, reached $515.5 million, marking the highest figure in two weeks. Although the ETFs reached a combined net inflow of $631.3 million on February 13, they struggled to maintain momentum, experiencing a net outflow of $35.6 million on February 21 due to a larger outflow from GBTC and smaller inflows to other funds.

Fidelity's ETF led the inflows on February 26, surpassing $243 million, nearly half of the day's total net inflow and marking its second-highest inflow day after January 17. The remaining net inflow came from BlackRock's ETF, ARK Invest, and 21Shares fund, with respective inflows of approximately $112 million and over $130.5 million.

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Published February 27th, 2024 at 13:27 IST