Despite the removal of more than $5 billion in Bitcoin, Grayscale’s GBTC Bitcoin ETF is seeing a significant reduction in withdrawals.
A little over $5 billion worth of digital assets have been pulled out of Grayscale’s newly established Bitcoin ETF, GBTC.
Market watchers are hopeful that the worst may be behind us despite the large outflows. This outlook might lead to a change for the better in Bitcoin’s price performance.
Following the recent approval of several spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC), Bitcoin saw a significant 20% drop in value. The main cause of this decline was the substantial withdrawal of funds from Grayscale.
According to analysts, investors who were previously exposed to the fund’s discount are now taking profits, which is causing the huge withdrawals. There were also signs that some traders were shifting their money out of GBTC because of its relatively hefty cost.
While other exchange-traded funds (ETFs) like BlackRock’s IBIT have costs below 1%, GBTC’s current fee is 1.5%.
These factors had a significant impact on the first wave of withdrawals from the fund. On the other hand, recent patterns show a decrease, with the lowest GBTC outflow since the first day of trade occurring on the eleventh day, with $255 million removed. Nonetheless, BitMEX Research reports that the fund has lost more than $5 billion in total.
At the same time, Grayscale’s Bitcoin holdings have dropped significantly due to the sell-off; they are presently at more than 508,000 BTC, with a worth of $21 billion, according to Arkham Intelligence. Notably, the fund has deposited 113,129 BTC into Coinbase, which is equal to $4.6 billion, since the debut of spot Bitcoin ETFs.
Market watchers view the decline in GBTC outflows as a positive sign for Bitcoin’s price trajectory. As an example, JA Maartun just published a graph showing how Grayscale’s influence on Bitcoin pricing is decreasing. The value of Bitcoin not only stayed the same but also showed remarkable growth, even if it was sold off.
Maartun spoke highly of the fact that the price was able to rise despite the fact that Grayscale exerted no selling pressure.
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