Outflows from the Grayscale Bitcoin Trust ETF are beginning to slow amid a double-digit recovery in the price of BTC since last week.<\/p>\n
Data compiled by James Seyffart, an analyst at Bloomberg, shows a steady decline in the volume of outflows exiting Grayscale’s Bitcoin Trust ETF. On Jan. 29,\u00a0$255M<\/a>\u00a0left the exchange-traded fund after its 11th day of trading. <\/p>\n Outflows from the fund have consistently fallen since tagging\u00a0$640.5M<\/a>\u00a0last week on its seventh day of trade.<\/p>\n Seyffart\u2019s data also indicates spot Bitcoin ETFs absorbed\u00a0$759.4M<\/a>\u00a0over 11 days of trading, despite more than $5B exiting Grayscale\u2019s Bitcoin ETF. For comparison, nearly $2.2B has flowed into BlackRock\u2019s iShares Bitcoin Trust, followed by $1.9B entering the Fidelity Wise Origin Bitcoin Fund, and the Ark 21Shares Bitcoin ETF taking in $596M.<\/p>\n The heavy outflows from Grayscale\u2019s ETF were likely propelled by investors that scooped up from the Grayscale Bitcoin Fund while shares were trading at a\u00a0heavy discount<\/a>\u00a0prior to its conversion to an exchange-traded fund exiting their positions.<\/p>\n Investors may also be exiting the fund in favor of other ETFs as Grayscale\u2019s parent company, Digital Currency Group, grapples with the fallout from the insolvency of its portfolio lending company,\u00a0Genesis Global<\/a>.<\/p>\n Despite the fund\u2019s heavy outflows, Grayscale still holds $21.5B worth of Bitcoin, ranking it among the largest BTC hodlers behind Satoshi Nakamoto and the Binance centralized exchange.<\/p>\n The recent decline in outflows may result from investors seeking to ride Bitcoin\u2019s recent recovery, with BTC rebounding 12.4% since tagging a low of $38,680 on Jan. 23.<\/p>\nInvestors offload Grayscale Bitcoin Fund shares<\/h2>\n
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