Why are there still major outflows from Grayscale's ETF and why have inflows to other ETFs slowed?
The main reason for the negative daily inflows into spot bitcoin ETFs was the continued decline in assets in the Grayscale Bitcoin Trust (GBTC) amid redemptions and selling of shares of the defunct FTX exchange, as well as a slowdown in inflows into other funds ahead of the weekend.
Over 11 trading days, outflows from Grayscale totaled $5.031 bln. FTX sold 22.3 mln GBTC shares, which were valued at $908 mln at the exchange rate as of January 11. BlackRock holds almost 50,000 BTC worth $2 bln. In or view, a rotation of funds is taking place between the 11 spot bitcoin ETFs. The companies that show small BTC accumulations will have to close their ETFs at some point in the future as investors will invest in liquid funds.
That said, outflows from Grayscale have slowed. On January 26, they amounted to $255.1 mln vs. $640.5 mln on January 22. The slowdown in outflows was the main reason for a rebound of the BTC/USDT pair to $42,842. The crypto market appears to be entering a more stable phase, with the price action consolidating around the $42k mark.