Grayscale's Bitcoin ETF records lowest outflows since conversion


Grayscale’s Bitcoin Trust (GBTC) has seen outflows reach their lowest point over the past few days, signaling a slowdown in withdrawal volumes.

According to data from BitMEX Research, GBTC had withdrawals of $44.2 million on Feb. 23, the lowest daily volume since its conversion on Jan. 11 from an over-the-counter product to an exchange-traded fund (ETF).

By the end of January, GBTC reported withdrawals totaling $5.64 billion, with a significant $640 million exiting on Jan. 22 alone. February has seen a decline in outflows, amounting to $1.8 billion so far. Since its inception, GBTC has witnessed a total withdrawal of $7.4 billion.

In contrast, BlackRock’s IBIT has amassed over $6.6 billion in investment since launching, followed by Fidelity’s FBTC with over $4.7 billion in capital. The third position is held by ARK 21Shares, with inflows of $1.4 billion over the same period.

GBTC Outflows

The significant exit from GBTC was anticipated. The spot Bitcoin ETF’s approval by the United States Securities and Exchange Commission on Jan. 10 opened the door for GBTC holders to convert and redeem their shares. Previously, investors had to sell shares on the secondary market to exit positions.

According to analysts, investors have also rebalanced their portfolios and migrated to Bitcoin ETFs with lower fees in recent weeks. GBTC charges a 1.5% annual management fee, whereas other issuers charge as little as 0.19%.

Grayscale’s Bitcoin fund may have another challenge ahead. The bankrupt crypto firm Genesis Global Holdco was recently granted court permission to sell $1.3 billion in GBTC’s shares to reimburse investors.

The massive outflows, however, may be counterbalanced by Grayscale’s fee structure. “They can have assets chopped by like 90% and still make more than all of the other issuers combined,” noted ETF Store president Nate Geraci on X (formerly Twitter).

Source : Cointelegraph by Ana Paula Pereira / Feb 25, 2024 logo


240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act. How we keep your money safe.