Bitcoin ETF: Grayscale’s GBTC Sees Net Outflows Surge While Others Remain Rangebound

Bitcoin ETF’s hype after the SEC approval saw  Grayscale dominate the market but for just the first day. Grayscale’s GBTC hit the $640 million mark for outflows on Monday, January 22. Other ETFs also saw significant NAV falls and large outflows.

Grayscale’s net outflows increase as the market struggles

Grayscale saw a huge increase in its outflows on Monday, January 22. The net outflow from the Grayscale Bitcoin ETF reached a whopping $640.50 million. Its overall net outflow now stands at an astounding $3.4 billion as a result.

The amount of excitement surrounding Spot Bitcoin ETFs hasn’t done anything to improve their performance since launch.  GoinGape previously reported that all 12 Spot Bitcoin ETFs saw a net outflow of $87.20 million on the seventh day of trading.

Additionally, $1.09 billion has been invested in these ETFs overall thus far. The enormous $3.4 billion outflow from GBTC, however, has had a significant impact on the inflow metric. At the moment, Grayscale’s GBTC has $21.53 billion in assets under management (AUM).

The only positive trading update for the day was $260.60 million of net inflow for BlackRock’s IBIT. Meanwhile, BlackRock Bitcoin ETF marked $1.6 billion in total AUM.

Bloomberg analyst Eric Balchunas says Grayscale’s big outflow number is its highest outflow so far. He added that while the other ETFs did the best to offset the outflows, they have fallen short.

Samson Mow mocks GBTC’s outflows

The CEO of Jan3, Samson Mow, recently made waves on social media by expressing his unique sense of humor in response to GBTC’s rising outflows.

In a post on platform X, Mow wrote that maybe “When they (Grayscale) hit 450,000 BTC in fees, GBTC will give in. If not, I’ll assume that a special agreement to redistribute Bitcoin holdings to the other ETFs is actually in place.”

Market dim now, but more money is to be pumped in the future

The hype around Bitcoin ETFs seems to have died out. At the time of writing, Bitcoin was trading at $38,576.21, being around 4% in the last 24 hours.  Bitcoin has been very range-bound following the SEC approval. However, the outlook for the digital asset is likely to be brighter than the current position.

According to a report by CNBC, with the ETF approval, investors in more conventional assets, like equities and bonds, now have an easier time than ever dipping their toes into the world of cryptocurrency thanks to the recent surge of bitcoin ETFs. Bitcoin holders who invest in ETFs can keep their bitcoin in their brokerage accounts alongside their other investments, saving them the need to open a separate account, which frequently carries expensive trading costs.

Another big anticipatory event for Bitcoin prices is the upcoming Bitcoin Halving. Even if it won’t happen immediately after the 2024 halving, the price of bitcoin will undoubtedly rise. It is predicted that the second Bitcoin halving will take place in April 2024. The fourth Bitcoin halving will raise the price of Bitcoin, just like all the previous ones and the effects they had on prices.