The Greyscale Bitcoin ETF has recorded the lowest outflow since the conversion

Grayscale Bitcoin Trust (GBTC) has seen a slowdown in outflows over the past few days as outflows hit their lowest levels.

According to data from BitMEX Research, GBTC had to withdraw $44.2 million on February 23, the lowest daily amount since it was converted from a non-traded to an exchange-traded fund (ETF) on January 11.

At the end of January, GBTC reported a total of $5.64 billion in cash, with a $640 million withdrawal on January 22 alone. In February, outflows decreased to $1.8 billion. Since its inception, GBTC has seen a total of $7.4 billion in withdrawals.

In contrast, BlackRock's IBIT has accumulated more than $6.6 billion in investments since its launch, while Fidelity's FBTC has more than $4.7 billion in capital. The third place is occupied by ARK 21Shares, which earned 1.4 billion dollars in the same period.

Bitcoin ETF Flow – February 24, 2024

All information is now entered, except perhaps for the Galaxy/Invesco product.

Friday was a strong day, with net income of +$232.3m. Also, GBTC outflows were only $44m, the lowest level since January 11 pic.twitter.com/1Q0OtjEJLt

— BitMEX Research (@BitMEXResearch) February 24, 2024

GBTC exits

A significant exit from GBTC was already anticipated. The approval of the Bitcoin ETF by the Securities and Exchange Commission on January 10 opened the door for GBTC holders to switch and redeem their shares. Previously, investors had to sell shares on the secondary market to exit positions.

According to analysts, investors have adjusted their portfolios and migrated to low-fee Bitcoin ETFs in recent weeks. GBTC charges a 1.5% annual management fee, while other issuers charge 0.19% less.

The Greyscale Bitcoin Fund may have another challenge ahead. Bankrupt crypto firm Genesis Global Holco was recently granted court approval to sell $1.3 billion worth of GBTC shares to compensate investors.

The huge cost streams, however, can be balanced with a grayscale fee structure. “They can have assets cut by 90% and still make more than other issuers,” ETF Store president Nate Geracchi said on X (formerly Twitter).

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