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News

Grayscale’s GBTC Faces $640M Exodus, Market Sentiment Plummets!

January 23, 2024 - Around 2 mins mins to read

Key Points:

  • Grayscale’s GBTC records a staggering $640 million outflow, marking a significant downturn.
  • Analysts note a broader trend with overall ETF outflows of $21 million last week.
In the aftermath of the long-awaited Bitcoin ETF launch, GBTC is closely monitoring market dynamics as reports unveil a concerning trend.
Grayscale GBTC Faces $640M Exodus, Market Sentiment Plummets!

Analyst James Seyffart of Bloomberg highlighted a significant development on January 23, declaring a noteworthy outflow in Grayscale‘s Bitcoin ETF, GBTC.

GBTC experienced an astonishing $640 million outflow, signaling what Seyffart describes as a “bad day for Bitcoin ETFs.” The total outflow for Grayscale’s GBTC now stands at an impactful $3.45 billion, adding a layer of complexity to the post-ETF market analysis.

Grayscale's GBTC Faces $640M Exodus, Market Sentiment Plummets!

The SEC’s approval of the spot Bitcoin ETF sparked a flurry of trades in the ETF market, fueling anticipation and concern within the crypto community. Referred to as the “Cointecky Derby” by Bitcoin analyst Eric Balchunas, this term captures the competitive landscape among ETF issuers, drawing parallels to the prestigious Kentucky Derby.

Fidelity’s FBTC Takes Hit Amid ETF Slide!

Financial commentator Peter Schiff weighed in on the situation, noting a 20% drop in Bitcoin ETFs from their peak. Fidelity’s FBTC emerged as the biggest loser among the ETFs, experiencing a substantial 32% fall according to Schiff’s research.

Seyffart’s analysis reveals a broader trend of ETF outflows surpassing inflows, impacting the entire “Cointecky Derby.” A recent Bloomberg report disclosed an overall ETF outflow of $21 million in the last week, with investors withdrawing their assets.

Despite a promising start with remarkable inflows totaling $1.25 billion in the previous week, the landscape has shifted. GBTC, since its launch, garnered significant attention with $4.1 billion in inflows. Notably, BlackRock and Fidelity led the market with their ETFs, IBIT and FBTC, contributing the majority of the initial inflows. As the crypto community navigates these market fluctuations, all eyes remain on the evolving dynamics of the Bitcoin ETF landscape.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

GBTC

Grayscale

Grayscale's GBTC

Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
News

Grayscale’s GBTC Faces $640M Exodus, Market Sentiment Plummets!

Key Points:

  • Grayscale’s GBTC records a staggering $640 million outflow, marking a significant downturn.
  • Analysts note a broader trend with overall ETF outflows of $21 million last week.
In the aftermath of the long-awaited Bitcoin ETF launch, GBTC is closely monitoring market dynamics as reports unveil a concerning trend.
Grayscale GBTC Faces $640M Exodus, Market Sentiment Plummets!

Analyst James Seyffart of Bloomberg highlighted a significant development on January 23, declaring a noteworthy outflow in Grayscale‘s Bitcoin ETF, GBTC.

GBTC experienced an astonishing $640 million outflow, signaling what Seyffart describes as a “bad day for Bitcoin ETFs.” The total outflow for Grayscale’s GBTC now stands at an impactful $3.45 billion, adding a layer of complexity to the post-ETF market analysis.

Grayscale's GBTC Faces $640M Exodus, Market Sentiment Plummets!

The SEC’s approval of the spot Bitcoin ETF sparked a flurry of trades in the ETF market, fueling anticipation and concern within the crypto community. Referred to as the “Cointecky Derby” by Bitcoin analyst Eric Balchunas, this term captures the competitive landscape among ETF issuers, drawing parallels to the prestigious Kentucky Derby.

Fidelity’s FBTC Takes Hit Amid ETF Slide!

Financial commentator Peter Schiff weighed in on the situation, noting a 20% drop in Bitcoin ETFs from their peak. Fidelity’s FBTC emerged as the biggest loser among the ETFs, experiencing a substantial 32% fall according to Schiff’s research.

Seyffart’s analysis reveals a broader trend of ETF outflows surpassing inflows, impacting the entire “Cointecky Derby.” A recent Bloomberg report disclosed an overall ETF outflow of $21 million in the last week, with investors withdrawing their assets.

Despite a promising start with remarkable inflows totaling $1.25 billion in the previous week, the landscape has shifted. GBTC, since its launch, garnered significant attention with $4.1 billion in inflows. Notably, BlackRock and Fidelity led the market with their ETFs, IBIT and FBTC, contributing the majority of the initial inflows. As the crypto community navigates these market fluctuations, all eyes remain on the evolving dynamics of the Bitcoin ETF landscape.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.