Surge in Net Outflows for Grayscale's GBTC Bitcoin ETF as Others Stay Rangebound

Grayscale Bitcoin ETF Sees Massive Outflows

The Grayscale Bitcoin ETF experienced a significant increase in outflows on January 22. The net outflow reached $640.50 million, bringing the total net outflow to $3.4 billion. This has had a major impact on the inflow metric, as Grayscale’s GBTC currently has $21.53 billion in assets under management (AUM).

Spot Bitcoin ETFs Struggle

Despite the hype surrounding Spot Bitcoin ETFs, their performance has not improved since launch. On the seventh day of trading, all 12 Spot Bitcoin ETFs saw a net outflow of $87.20 million. However, these ETFs have received a total investment of $1.09 billion.

BlackRock’s IBIT Sees Net Inflow

The only positive trading update for the day was BlackRock’s IBIT, which saw a net inflow of $260.60 million. BlackRock Bitcoin ETF has a total AUM of $1.6 billion.

Samson Mow Mocks GBTC’s Outflows

Samson Mow, CEO of Jan3, made a humorous comment on social media about GBTC’s rising outflows. He speculated that when Grayscale hits 450,000 BTC in fees, GBTC will give in or that there may be a special agreement to redistribute Bitcoin holdings to other ETFs.

The Current State and Future Outlook

Bitcoin is currently trading at $38,576.21 and has been range-bound following the SEC approval. However, with the approval of Bitcoin ETFs, more investors in conventional assets now have an easier way to invest in cryptocurrency. The upcoming Bitcoin Halving event is also anticipated to raise the price of Bitcoin in the future.

Hot Take: Bitcoin ETFs Experience Significant Outflows

The approval of Bitcoin ETFs by the SEC has not resulted in improved performance for these investment vehicles. Grayscale’s GBTC, in particular, has seen massive outflows, reaching $640.50 million on January 22. This has had a significant impact on the overall net outflow and inflow metrics. While other ETFs have tried to offset the outflows, they have fallen short. Despite the current market dim, there is still anticipation for more money to be pumped into Bitcoin through ETFs in the future.