KEY POINTS
- GBTC recorded outflows amounting to $429 million, which marked its lowest level, on its ninth day of trading
- This intriguing trend sparked speculations that the GBTC exodus could be finally over
- As of 5:01 a.m. ET on Friday, Bitcoin displayed strength, trading at $40,135.63
The Grayscale Bitcoin Trust (GBTC), by Grayscale Investments, experienced a remarkable reduction in outflows with the decline reaching a noteworthy low point on the ninth day of trading, suggesting a possible conclusion to the prolonged exodus trend.
GBTC has been recording massive outflows since it officially traded as a spot Bitcoin exchange-traded fund (ETF).
However, on its ninth day of trading, the trust recorded outflows amounting to $429 million, which marked its lowest level.
This intriguing trend sparked speculations that the GBTC exodus could be finally over.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, highlighted that while the figure is relatively "low" and signifies improvement, it remains a substantial amount.
"Outflows today were 'only' $425m, lowest bleed since day one and seemingly trending down. That said it's still a pretty large number," Balchunas said in a tweet, adding, "This number confirms the futility of looking at wallets all day as some kind of predictor of flows. Those had wildly higher numbers today. If anything, it's volume that has become the best predictor, low volume = less bad outflows."
$GBTC outflows today were ‘only’ $425m, lowest bleed since day one and seemingly trending down. That said it’s still a pretty large number. Source: Bloomberg terminal
— Eric Balchunas (@EricBalchunas) January 25, 2024
In a separate tweet, Balchunas emphasized that while GBTC observed a declining trend in outflows, all other spot Bitcoin ETFs encountered a reduction in inflows.
"The good news: GBTC outflows trending down. The bad news: so are the Nine's. That leaves us with TOTAL ROLLING NET FLOWS of +$824m. Also $ARKB and $BITB crossing half a billion is remarkable. For any normal launch in first month that's considered blockbuster-level success," Balchunas said in a tweet.
The good news: GBTC outflows trending down. The bad news: so are the Nine's. That leaves us with TOTAL ROLLING NET FLOWS of +$824m. Also $ARKB and $BITB crossing half a billion is remarkable. For any normal launch in first month that's considered blockbuster-level success. https://t.co/jPtlxhMtwP
— Eric Balchunas (@EricBalchunas) January 25, 2024
While the crypto community continues to speculate on GBTC's recent performance, analysts at JP Morgan, led by Market Strategy Managing Director Nikolaos Panigirtzou, have expressed the view that profit-taking within GBTC has largely concluded.
They emphasized that this suggests "that most of the downward pressure on Bitcoin from that channel should be largely behind us," considering that "$4.3b has come out already from GBTC."
JUST IN: 🇺🇸 JPMorgan says profit-taking on GBTC has largely concluded, expecting limited further downside for #Bitcoin
— Bitcoin Magazine (@BitcoinMagazine) January 25, 2024
Bullish! 🚀
JP Morgan had earlier projected an outflow of approximately $3 billion from GBTC, as investors sought to capitalize on the ETF trading at a discount to the actual value of Bitcoin
As of 5:01 a.m. ET on Friday, Bitcoin displayed strength, trading at $40,135.63, accompanied by a robust 24-hour trading volume of $18.71 billion.
Over the past 24 hours, Bitcoin's value has increased by 0.31%, although it has experienced a 2.97% decline over the preceding seven days.
Bitcoin's circulating supply remains at 19.61 million BTC, maintaining its position as the world's largest cryptocurrency by market capitalization, currently standing at $786.36 billion according to CoinMarketCap data.
