While Bitcoin’s value is on the path to recovery, the sell-off from Grayscale’s Bitcoin Trust (GBTC) is also showing a downtrend.
Bloomberg analyst James Seyffart pointed out that it is the lowest outflow day for GBTC since day 1 of trading. On Friday, Day 11, the GBTC outflows came to $255.1 million, taking the cumulative outflows for the fund to around $5 billion.
Grayscale outflows slow down
This development comes after Grayscale reportedly moved over 19,000 BTC from its primary wallet on Wednesday. If reports are to be noted, Grayscale has transferred almost 113,000 BTC from its holdings. According to data by Arkham cited by journalist Wu Collins, Grayscale executed a transfer of 10,923 BTC to Coinbase Prime Deposit, with an approximate value of $449 million, on Friday.
What is noteworthy is the influx of funds into new spot Bitcoin ETFs. After 10 trading days, these ETFs purchased roughly 134,000 BTC valued at $5.6 billion. This surge in buying activity somewhat balanced out the criticism that Grayscale faced from the Bitcoin community. BTC advocate Nic Carter criticized GBTC, calling it “a gigantic wrecking ball of toxic waste” for its perceived negative impact on the market.
BTC recovers on back of fund influx
Bloomberg’s flow data also revealed Grayscale Bitcoin Trust topped the volume list with an 11-day total of $12,625 million against outflows of $4,786.1 million. iShares Bitcoin Trust recorded an inflow of $2,086.3 million against a total volume of $4,847 million. Fidelity Wise Origin Bitcoin Fund saw an inflow of $1,825.7 million, with a total volume of $4,241 million. Other players, such as ARK 21Shares Bitcoin ETF and Bitwise Bitcoin ETF, had total volumes of $1,314 million and $702 million, respectively, but with less dramatic inflow/outflow figures.
$GBTC selling has dragged #Bitcoin lower, but we have noted that the volume of outflows has begun to trend lower
Time to zoom out and consider the long-term impact of the spot #Bitcoin ETF:https://t.co/TrL9U2MHut
— FS Insight (@fs_insight) January 26, 2024
Meanwhile, Bitcoin itself has shown resilience, recovering from its dip below $40,000. The current price of Bitcoin is $41,780, after a 5% uptick based on CoinGecko data. It has a 24-hour trading volume of $25.94 billion.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
