GBTC Losses Overshadow Rivals as Crypto Funds Face $500M Outflows: CoinShares

• Grayscale's Bitcoin ETF Experiences Continued Outflows
• Comprehensive Outflows from Global Vehicles
• Signs of Subsiding Outflows
• Grayscale - A Major Player in Bitcoin Transfers
• Considerations for Bitcoin Market

Grayscale's Bitcoin ETF Experiences Continued Outflows

The outflows from Grayscale's bitcoin ETF (GBTC) have continued to surpass the inflows into other funds in spite of a notable slowdown in the past week, as stated in a recent report by digital asset manager, CoinShares. GBTC, known as the largest and oldest bitcoin fund, which has recently transitioned from a closed-end structure to an ETF, saw a net outflow of $2.2 billion in the course of the last week. Meanwhile, the newly launched U.S. bitcoin ETFs reported only $1.8 billion in net inflows, according to the same report.

Comprehensive Outflows from Global Vehicles

When taking into account net outflows from global vehicles, it is clear that crypto-focused funds have weathered net exits worth $500 million, as reported by CoinShares. James Butterfill, CoinShares' Head of Research, indicated that GBTC's outflows have now exceeded $5 billion since January 11. However, there was a decline in daily redemptions over the past week, suggesting a deceleration in sales.

Signs of Subsiding Outflows

Butterfill voiced a cautious optimism on the unattractive outflows in Grayscale, suggesting that they appear to be beginning to diminish.

Grayscale - A Major Player in Bitcoin Transfers

Blockchain data, compiled by Arkham Intelligence, shows that Grayscale, the fund manager, transferred approximately $289 million worth of bitcoin (BTC) to Coinbase Prime on Monday in anticipation of sales. This is almost half of the average daily transfer size of $530 million during the past week.

Considerations for Bitcoin Market

While this data may seem like positive news for bitcoin, it needs to be considered in the context of apparently declining inflows into the other newly launched U.S. spot bitcoin ETFs. Data suggests that these funds added around 46,000 bitcoin last week, compared to around 60,000 the previous week.

Edited by Jonathan Stoker