GBTC Outflow Dips to $394M From High of $640M

• On January 25, GBTC saw an outflow of $394 million,a notable decrease from the previous days’ outflows.
• The net outflow of GBTC since its launch stands at $4.4 billion, according to a Bloomberg report.
• JPMorgan predicts the conclusion of the profit-taking on GBTC and a further downside for Bitcoin.

The crypto community has been transfixed by massive outflows from Bitcoin exchange-traded funds since their launch earlier this month. Reportedly, one of the biggest player in the space, Grayscale Investments, has experienced a net outflow of more than $4.4 billion. However, investors may finally find solace as the GBTC outflow has been in decline for the past few days.

James Seyffart, a Senior ETF Analyst at Bloomberg, revealed that over the last day, GBTC saw an outflow of $394 million, a notable decline from the previous two days. January 23 saw $515 million and January 24 $425 million in outflows respectively.

Meanwhile, there are assumptions that the profit-taking on GBTC has almost concluded. In an X post, Bitcoin Magazine shared JPMorgan’s prediction of “limited further downside” for Bitcoin. JPMorgan Managing Director Nikolaos Panigirtzoglou commented,

Given $4.3b has come out already from GBTC, we conclude that GBTC profit taking has largely happened already. This would imply that most of the downward pressure on [B]itcoin from that channel should be largely behind us.

Bloomberg analyst Eric Balchunas highlighted the substantial drop in GBTC’s outflow through an official post on X. Though still “a pretty large number,” $425 million outflow on January 24 marked the “lowest bleed,” according to the analyst. He further cited,

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.

As previously reported by Coin Edition, GBTC outflow spiked dramatically in recent days, reaching $640 million on January 22. While Seyffart and Peter Schiff lamented over the “bear market” experienced by the ETF space then, the current data hints at a better environment.