Investor interest in newly launched spot Bitcoin ETFs seems to wane, as another $80 million net outflow was recorded yesterday.
According to Bloomberg reports, Bitcoin ETFs witnessed an approximately $270 million inflow on Wednesday. However, factoring in the withdrawals from Grayscale Investment’s Bitcoin ETF, the net outflows totaled about $153 million on that day. The trend continued today with a $80 million net outflow, marking the fourth straight day of net withdrawals across these 10 funds.
These outflows were solely from the Grayscale Bitcoin Trust (GBTC), which transitioned into an ETF following the green light from the U.S. Securities and Exchange Commission. Since its transformation into an ETF on Jan. 11, GBTC, active for over a decade, has seen approximately $4.8 billion withdrawn.
During this period, the value of Bitcoin fell by about 20%. The change of GBTC from a closed-end trust to an ETF format opened the door for investors to exit a previously popular arbitrage opportunity.
The shift led to significant sell-offs, partly fueled by the liquidation activities of the bankrupt FTX exchange’s estate. The highest daily outflow from this fund was recorded at $641 million on Jan. 22, but by Jan. 25, this had reduced to $394 million.
Source: https://crypto.news/spot-bitcoin-etfs-see-80m-net-outflows-on-thursday/