Record Outflow of Bitcoin Spot ETFs
On January 24, Bitcoin spot ETFs experienced a total net outflow of $159 million, marking the largest one-day net outflow since their launch, according to analytics platform Alpha. This surpasses the previous record for outflows.
Grayscale ETF Leads in Net Outflows
The Grayscale ETF has been the frontrunner in net outflows, with a total of $429 million since its inception. On the other hand, all other ETFs, excluding Grayscale, witnessed net inflows amounting to $270 million.
Decreasing Outflows from Grayscale Bitcoin Trust
For the second consecutive day, funds flowing out of the Grayscale Bitcoin Trust (GBTC) have been declining. This decrease represents the lowest figure since the launch of spot Bitcoin ETFs in the United States.
Downward Trend in GBTC Outflows
Bloomberg analyst Eric Balchunas observed that GBTC outflows are showing a downward trend. However, he acknowledged that liquidations still remain substantial.
Bitcoin Trust Suffers Substantial Losses
CC15Capital reports that on January 23, BTC Trust experienced an outflow of $515 million, followed by another outflow of $640 million on January 22. In total, over nine trading days, the trust lost 106,092 BTC valued at approximately $4.4 billion.
Predicted Failure of Most Bitcoin Spot ETFs
Grayscale CEO Michael Sonnenshein anticipates that a majority of the 11 approved Bitcoin spot ETFs by the SEC will likely fail. He believes that only “two or three exchange-traded funds will probably achieve some critical mass.”
Hot Take: Implications of Record Outflow
The record outflow of Bitcoin spot ETFs indicates a shift in investor sentiment towards these investment vehicles. It suggests that there may be concerns or uncertainties surrounding the performance and potential returns of such ETFs. This trend highlights the need for careful evaluation and due diligence when considering investments in cryptocurrency-related ETFs. As the market continues to evolve, it remains essential for investors to stay informed about the latest developments and make informed decisions based on their risk tolerance and investment goals.
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