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Grayscale’s GBTC Saw Lowest Outflow of $44.2M Since ETF Approval


Grayscale’s GBTC Saw Lowest Outflow of $44.2M Since ETF Approval

Despite continuous outflows, Grayscale's Bitcoin Trust (GBTC) seems to be experiencing a slower bleed. Withdrawals hit their lowest point since its conversion to an ETF in January, with daily amounts dropping to $44.2 million on February 23.

This deceleration follows significant outflows earlier in the year. By the end of January, GBTC had seen over $5.64 billion in withdrawals, including a single-day exit of $640 million. February has witnessed approximately $1.8 billion in outflows, bringing the total since inception to $7.4 billion.

However, these outflows appear to be favoring competing Bitcoin ETFs. BlackRock's IBIT, for example, has attracted over $6.6 billion in investments since its launch, followed by Fidelity's FBTC with $4.7 billion.

The introduction of spot Bitcoin ETFs has provided existing GBTC holders with the option to convert and redeem their shares, a key factor contributing to the initial surge in outflows. Additionally, the lower fees of competing ETFs, with some charging as little as 0.19% compared to GBTC's 1.5%, have motivated investors to rebalance their portfolios.

Another factor adding complexity is the recent court approval for bankrupt crypto firm Genesis to sell $1.3 billion in GBTC shares to repay creditors. While the future trajectory of GBTC remains uncertain, the slowed pace of outflows suggests a potential stabilization.