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The Grayscale Bitcoin Trust ETF (GBTC) experienced a withdrawal of $17.5 Million in a single day, hitting its all-time low.
Grayscale Investment is one of the organizations that got approval for the spot Bitcoin ETF. On Wednesday, GBTC hit its new all-time low, helping the fund category end a two-day net outflow streak. $17.5 Million of net money was withdrawn from the funds, as per the Farside Investors data.
GBTC Hit Its All-Time Low
A report from Farside Investors recorded the assets leaving GBTC hit a new single-day low in funds.
Grayscale Investment’s spot bitcoin ETF experienced a historic low in asset withdrawal, contributing to the end of a two-day trend of net withdrawals across the wider fund category.
On Wednesday, GBTC recorded a net departure of $17.5 Million, the lowest to date, as reported by Farside Investors, marking a significant decrease from the $303 Million and $155 Million net outflows on Monday and Tuesday, respectively.
The reduced outflow from GBTC aided the US spot bitcoin ETF sector, consisting of 11 funds, in achieving net inflows totaling $124 Million. Additionally, the BTC funds faced net outflows of $224 Million and $19 Million on Monday and Tuesday, respectively.
Since Bitcoin’s transformation to an ETF on January 11, Grayscale’s Bitcoin offering has consistently reported net outflows every trading day, with the most significant outflow hitting $642 Million on March 18.
The ongoing loss of assets from the trust can be due to GBTC’s 1.5% fee, which is notably higher than that of the nine other spot bitcoin ETFs. The net outflows from GBTC on Wednesday, amounting to $17.5 Million, were lower than the prior record of $22 Million on February 26.
Sumit Roy, a senior analyst at ETF.com, in an interview with Blockworks, expressed that the initial wave of sales by arbitrage traders and those shifting to more affordable funds was mostly concluded. However, GBTC’s outflows hiked in successive days, hitting $600 Million on February 29.
Roy cautioned Blockworks that it’s early to declare the end of GBTC’s outflows. He suggested that a pattern of minor outflows, or even inflows, over several days would be necessary before making such a determination.
A few of the analysts consider bankruptcy lender Genesis as the major player behind the continued outflows from GBTC. Genesis liquidating its holdings in the fund and estimates valued Genesis’s investment in the Grayscale fund at approximately $1.6 billion.
However, as per court documents, Genesis and its associated commodities had completely liquidated their nearly 36 million GBTC shares by April 2, using the proceeds to purchase 32,041 Bitcoin (BTC).
Bitcoin’s Performance To Date
According to CoinMarketCap data, BTC is currently trading at $70,640.85, after a surge of 0.05% in the last day with a market cap of $1,390,240,213,879. The big cheese of the crypto market holds $29,676,808,236 in 24-hour volume.
Also, BTC recorded its all-time high of $73,750.07 on March 14, 2024, and documented its all-time low of $0.04865 on July 15, 2010.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
