Grayscale Bitcoin ETF Faces Outflows: Concerns Rise Over Bitcoin Decline

  • Following the launch of 11 Spot Bitcoin ETFs last week, ETFs experienced a withdrawal from the first day.
  • According to data provided by BitMEX Research, Grayscale Bitcoin ETF (GBTC) recorded a massive net outflow of $579.6 million on January 18, Thursday.
  • The product of BlackRock, the biggest competitor of Grayscale, named iShares Bitcoin Trust (IBIT), achieved a net inflow of $735.80 million this week.

Digital asset manager Grayscale Investments’ Bitcoin ETF is losing ground: Outflow concerns are on the rise!

Outflows in Grayscale’s Bitcoin ETF

Grayscale

Following the launch of 11 Spot Bitcoin ETFs last week, ETFs experienced a withdrawal from the first day. The fifth trading day was no exception, and all Bitcoin ETFs experienced a setback. Also, Grayscale’s GBTC was once again in the spotlight but certainly not in a positive way.

According to data provided by BitMEX Research, Grayscale Bitcoin ETF (GBTC) recorded a massive net outflow of $579.6 million on January 18, Thursday. Therefore, the net outflow of GBTC increased to $2.2 billion. In a post on X, James Butterfill, Head of Research at CoinShares, revealed that the total outflows of GBTC reached $1 billion on the 5th day.

On the fifth trading day, the total net outflow from all 12 Spot Bitcoin ETFs reached $131.6 million. On the other hand, the total net inflow for this week was recorded as $131.7 million. This inflow figure shows weak performance, especially considering the significant outflows from Grayscale Bitcoin ETF. GBTC recorded a net outflow of $1.66 billion this week.

How did Grayscale’s competitors perform?

The product of BlackRock, the biggest competitor of Grayscale, named iShares Bitcoin Trust (IBIT), achieved a net inflow of $735.80 million this week, which was the highest figure. On the other hand, Fidelity Wise’s FBTC saw a net inflow of $645.60 million and ranked second. The total net inflow from IBIT and FBTC balanced out more than 80% of GBTC’s outflows this week, resulting in an overall positive flow.

On the fifth trading day, IBIT and FBTC Spot ETFs recorded net inflows of $145.60 million and $177.90 million, respectively. On the other hand, ARK 21 Shares (ARKB) saw a net inflow of $41.80 million, and Bitwise’s BITB saw a net inflow of $20.10 million. Meanwhile, Franklin Templeton’s EZBC, the BTC ETF with the lowest fee, recorded ‘zero’ net inflow. Additionally, Hashdex’s DEFI and WisdomTree’s BTCW had the same figure. Invesco Galaxy Bitcoin ETF (BTCO) also achieved a significant net inflow of $59 million.

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